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Crane's (CR) Earnings and Revenues Surpass Estimates in Q3
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Crane Co. (CR - Free Report) kept its earnings beat streak alive in the third quarter of 2022, delivering better-than-expected results for the seventh consecutive quarter. The quarterly earnings surpassed the Zacks Consensus Estimate by 0.5%. Sales surprise was 0.6%.
Adjusted earnings came in at $1.86 per share, surpassing the Zacks Consensus Estimate of $1.85. However, the bottom line decreased 1.6% from the year-ago quarter’s figure of $1.89.
Revenue Details
Crane’s net sales were $815 million in the quarter, down 8.8% year over year.
However, the quarterly net sales surpassed the Zacks Consensus Estimate of $810 million.
Crane reports net sales under four segments: Process Flow Technologies, Payment & Merchandising Technologies, Aerospace & Electronics, and Engineered Materials (presented as continuing operations as of Jun 30, 2022).
The segmental information is briefly discussed below:
Revenues from Process Flow Technologies (representing 30.7% of the quarter’s total revenues) were $250 million, declining 16% from the year-ago quarter. Movement in foreign currencies had an adverse impact of 5% on sales. The divestiture of Crane Supply impacted segmental revenues by 20%. The segment’s order backlog was $354 million in the reported quarter, reflecting sequential growth of 1.4%.
Revenues from Payment & Merchandising Technologies (representing 41.1% of the quarter’s total revenues) totaled $335 million, decreasing 8% year over year on a 3% decline in core sales. Foreign currency movements had an adverse impact of 6% on segmental revenues. The order backlog at the end of the reported quarter was $500 million, up 3.7% sequentially.
Revenues from the Aerospace & Electronics segment (representing 20.5% of the quarter’s total revenues) were $167 million, down 1% year over year. The order backlog at the end of the quarter was $592 million, up 10.9% sequentially.
Revenues from the Engineered Materials segment (representing 7.7% of the quarter’s total revenues) were $63 million, increasing 4% year over year.
In the third quarter, Crane’s sales cost of $485.6 million reflected a 12.7% decline from the year-ago quarter. The metric represented 59.6% of net sales compared with 62.2% a year ago. Selling, general and administrative expenses increased 2.9% to $198.3 million. The same represented 24.3% of net sales compared with 21.6% in the year-ago quarter.
Adjusted operating profit in the third quarter decreased 1.8% year over year to $143.5 million, while the margin increased 120 basis points to 17.6%. Interest expenses in the reported quarter were $13.5 million, increasing 22.7% from the year-ago figure.
Balance Sheet and Cash Flow
Exiting the third quarter, Crane had cash and cash equivalents of $438.6 million, down 8.4% from $478.6 million at the end of the fourth quarter of 2021. The long-term debt balance was $843.2 million compared with $842.7 million at the end of the fourth quarter of 2021.
In the first nine months of 2022, Crane made no repayment of commercial paper (maturity >90 days).
In the same period, CR used net cash of $378 million for operating activities against $327 million generated in the year-ago period. Capital expenditure was $36.8 million in the period, higher than the $26.7 million spent in the previous year. Free cash flow was $414.8 million in the first nine months of 2022 against the $300.3 million free cash flow generated in the year-ago period.
Shareholder-Friendly Policy
In third-quarter 2022, Crane used $26.4 million for paying out dividends, up 4.3% from the year-ago quarter’s level. The company did not make any share reacquisition in the quarter.
2022 Outlook
The company adjusted the midpoint of full-year 2022 GAAP EPS guidance primarily to reflect the third quarter after-tax charges of $2.83 per share related to the August asbestos entity sale transaction. Crane adjusted its full-year GAAP earnings from continued operations to $6.58-$6.72 from the earlier issued projection of $9.80-$10.20.
Management reaffirmed the midpoint of adjusted earnings per share for 2022. The company anticipates adjusted earnings per share of $7.58-$7.72 for the year compared with the $7.45-$7.85 projected earlier. Adjusted free cash flow is projected to be $350-$390 million for the current year.
Zacks Rank & Other Stocks to Consider
CR currently carries a Zacks Rank #4 (Sell). Some better-ranked companies from the Industrial Products sector are discussed below:
EPAC’s earnings estimates have increased 9.1% for fiscal 2023 (ending August 2023) in the past 60 days. The company’s shares have gained 26.3% in the past three months.
iRobot Corporation (IRBT - Free Report) presently has a Zacks Rank of 2 (Buy). IRBT’s earnings surprise in the last four quarters was 59.1%, on average.
In the past 60 days, iRobot’s earnings estimates have increased 0.1% for 2022. The stock has rallied 36.7% in the past three months.
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Crane's (CR) Earnings and Revenues Surpass Estimates in Q3
Crane Co. (CR - Free Report) kept its earnings beat streak alive in the third quarter of 2022, delivering better-than-expected results for the seventh consecutive quarter. The quarterly earnings surpassed the Zacks Consensus Estimate by 0.5%. Sales surprise was 0.6%.
Adjusted earnings came in at $1.86 per share, surpassing the Zacks Consensus Estimate of $1.85. However, the bottom line decreased 1.6% from the year-ago quarter’s figure of $1.89.
Revenue Details
Crane’s net sales were $815 million in the quarter, down 8.8% year over year.
However, the quarterly net sales surpassed the Zacks Consensus Estimate of $810 million.
Crane reports net sales under four segments: Process Flow Technologies, Payment & Merchandising Technologies, Aerospace & Electronics, and Engineered Materials (presented as continuing operations as of Jun 30, 2022).
The segmental information is briefly discussed below:
Revenues from Process Flow Technologies (representing 30.7% of the quarter’s total revenues) were $250 million, declining 16% from the year-ago quarter. Movement in foreign currencies had an adverse impact of 5% on sales. The divestiture of Crane Supply impacted segmental revenues by 20%. The segment’s order backlog was $354 million in the reported quarter, reflecting sequential growth of 1.4%.
Revenues from Payment & Merchandising Technologies (representing 41.1% of the quarter’s total revenues) totaled $335 million, decreasing 8% year over year on a 3% decline in core sales. Foreign currency movements had an adverse impact of 6% on segmental revenues. The order backlog at the end of the reported quarter was $500 million, up 3.7% sequentially.
Revenues from the Aerospace & Electronics segment (representing 20.5% of the quarter’s total revenues) were $167 million, down 1% year over year. The order backlog at the end of the quarter was $592 million, up 10.9% sequentially.
Revenues from the Engineered Materials segment (representing 7.7% of the quarter’s total revenues) were $63 million, increasing 4% year over year.
Crane Holdings, Co. Price and Consensus
Crane Holdings, Co. price-consensus-chart | Crane Holdings, Co. Quote
Margin Profile
In the third quarter, Crane’s sales cost of $485.6 million reflected a 12.7% decline from the year-ago quarter. The metric represented 59.6% of net sales compared with 62.2% a year ago. Selling, general and administrative expenses increased 2.9% to $198.3 million. The same represented 24.3% of net sales compared with 21.6% in the year-ago quarter.
Adjusted operating profit in the third quarter decreased 1.8% year over year to $143.5 million, while the margin increased 120 basis points to 17.6%. Interest expenses in the reported quarter were $13.5 million, increasing 22.7% from the year-ago figure.
Balance Sheet and Cash Flow
Exiting the third quarter, Crane had cash and cash equivalents of $438.6 million, down 8.4% from $478.6 million at the end of the fourth quarter of 2021. The long-term debt balance was $843.2 million compared with $842.7 million at the end of the fourth quarter of 2021.
In the first nine months of 2022, Crane made no repayment of commercial paper (maturity >90 days).
In the same period, CR used net cash of $378 million for operating activities against $327 million generated in the year-ago period. Capital expenditure was $36.8 million in the period, higher than the $26.7 million spent in the previous year. Free cash flow was $414.8 million in the first nine months of 2022 against the $300.3 million free cash flow generated in the year-ago period.
Shareholder-Friendly Policy
In third-quarter 2022, Crane used $26.4 million for paying out dividends, up 4.3% from the year-ago quarter’s level. The company did not make any share reacquisition in the quarter.
2022 Outlook
The company adjusted the midpoint of full-year 2022 GAAP EPS guidance primarily to reflect the third quarter after-tax charges of $2.83 per share related to the August asbestos entity sale transaction. Crane adjusted its full-year GAAP earnings from continued operations to $6.58-$6.72 from the earlier issued projection of $9.80-$10.20.
Management reaffirmed the midpoint of adjusted earnings per share for 2022. The company anticipates adjusted earnings per share of $7.58-$7.72 for the year compared with the $7.45-$7.85 projected earlier. Adjusted free cash flow is projected to be $350-$390 million for the current year.
Zacks Rank & Other Stocks to Consider
CR currently carries a Zacks Rank #4 (Sell). Some better-ranked companies from the Industrial Products sector are discussed below:
Enerpac Tool Group Corp. (EPAC - Free Report) delivered a four-quarter earnings surprise of 3.4%, on average. EPAC presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks.
EPAC’s earnings estimates have increased 9.1% for fiscal 2023 (ending August 2023) in the past 60 days. The company’s shares have gained 26.3% in the past three months.
iRobot Corporation (IRBT - Free Report) presently has a Zacks Rank of 2 (Buy). IRBT’s earnings surprise in the last four quarters was 59.1%, on average.
In the past 60 days, iRobot’s earnings estimates have increased 0.1% for 2022. The stock has rallied 36.7% in the past three months.