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The Manitowoc Company, Inc. (MTW) Up 9.5% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for The Manitowoc Company, Inc. (MTW - Free Report) . Shares have added about 9.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is The Manitowoc Company, Inc. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Manitowoc Earnings Surpass Estimates in Q4, Rise Y/Y
Manitowoc reported adjusted earnings per share (EPS) of 74 cents in fourth-quarter 2022, beating the Zacks Consensus Estimate of 23 cents per share. The bottom line improved 185% year over year.
Including one-time items, the company reported a loss per share of $4.10 in the quarter compared with the prior-year quarter’s loss of 10 cents per share.
Manitowoc’s revenues were up 24.9% year over year to $622 million in the quarter under review. The top line surpassed the Zacks Consensus Estimate of $562 million. Unfavorable changes in foreign currency translation rates had an impact of $31.3 million on sales.
Orders in the reported quarter increased 15.1% year over year to $708 million. Backlog at the end of 2022 was $1,056 million, up 4.5% from the 2021-end levels.
Operational Update
Cost of sales increased 20.7% year over year to $505 million in the reported quarter. Gross profit rose 46.7% year over year to $117 million. The gross margin was 18.7% in the reported quarter compared with 16% in the prior-year quarter.
Engineering, selling and administrative expenses increased 2.5% year over year to $79 million. Adjusted operating income was $36.4 million in the quarter, up 108% from $17.5 million in the prior-year quarter. Adjusted EBITDA in the reported quarter was $51.5 million, marking a year-over-year increase of 50.6%. The adjusted EBITDA margin increased to 8.3% from the year-ago quarter’s 6.9%.
Financial Updates
Manitowoc reported cash and cash equivalents of $64.4 million at the end of 2022, down from $75.4 million at 2021-end. Long-term debt was $379.5 million at the end of 2022, down from $399.9 million at 2021-end. The company generated $77 million of cash in operating activities in 2022 compared with cash utilization of $76 million in 2021.
2022 Performance
Manitowoc reported adjusted EPS of $1.06 in 2022 compared with 86 cents reported in the prior year. Earnings beat the Zacks Consensus Estimate of 54 cents. Including one-time items, the company reported a loss of $3.51 per share against earnings per share of 31 cents posted in 2021.
Sales were up 18.2% year over year to $2.03 billion. The top line surpassed the Zacks Consensus Estimate of $1.97 billion.
Outlook
For 2023, Manitowoc expects revenues of $2-$2.1 billion. Adjusted EBITDA is anticipated between $130 million and $160 million. Adjusted EPS is expected between 35 cents and $1.15.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -63.08% due to these changes.
VGM Scores
Currently, The Manitowoc Company, Inc. has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, The Manitowoc Company, Inc. has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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The Manitowoc Company, Inc. (MTW) Up 9.5% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for The Manitowoc Company, Inc. (MTW - Free Report) . Shares have added about 9.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is The Manitowoc Company, Inc. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Manitowoc Earnings Surpass Estimates in Q4, Rise Y/Y
Manitowoc reported adjusted earnings per share (EPS) of 74 cents in fourth-quarter 2022, beating the Zacks Consensus Estimate of 23 cents per share. The bottom line improved 185% year over year.
Including one-time items, the company reported a loss per share of $4.10 in the quarter compared with the prior-year quarter’s loss of 10 cents per share.
Manitowoc’s revenues were up 24.9% year over year to $622 million in the quarter under review. The top line surpassed the Zacks Consensus Estimate of $562 million. Unfavorable changes in foreign currency translation rates had an impact of $31.3 million on sales.
Orders in the reported quarter increased 15.1% year over year to $708 million. Backlog at the end of 2022 was $1,056 million, up 4.5% from the 2021-end levels.
Operational Update
Cost of sales increased 20.7% year over year to $505 million in the reported quarter. Gross profit rose 46.7% year over year to $117 million. The gross margin was 18.7% in the reported quarter compared with 16% in the prior-year quarter.
Engineering, selling and administrative expenses increased 2.5% year over year to $79 million. Adjusted operating income was $36.4 million in the quarter, up 108% from $17.5 million in the prior-year quarter. Adjusted EBITDA in the reported quarter was $51.5 million, marking a year-over-year increase of 50.6%. The adjusted EBITDA margin increased to 8.3% from the year-ago quarter’s 6.9%.
Financial Updates
Manitowoc reported cash and cash equivalents of $64.4 million at the end of 2022, down from $75.4 million at 2021-end. Long-term debt was $379.5 million at the end of 2022, down from $399.9 million at 2021-end. The company generated $77 million of cash in operating activities in 2022 compared with cash utilization of $76 million in 2021.
2022 Performance
Manitowoc reported adjusted EPS of $1.06 in 2022 compared with 86 cents reported in the prior year. Earnings beat the Zacks Consensus Estimate of 54 cents. Including one-time items, the company reported a loss of $3.51 per share against earnings per share of 31 cents posted in 2021.
Sales were up 18.2% year over year to $2.03 billion. The top line surpassed the Zacks Consensus Estimate of $1.97 billion.
Outlook
For 2023, Manitowoc expects revenues of $2-$2.1 billion. Adjusted EBITDA is anticipated between $130 million and $160 million. Adjusted EPS is expected between 35 cents and $1.15.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -63.08% due to these changes.
VGM Scores
Currently, The Manitowoc Company, Inc. has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, The Manitowoc Company, Inc. has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.