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Why Is The Manitowoc Company, Inc. (MTW) Down 5.9% Since Last Earnings Report?
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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 lost about 5.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is The Manitowoc Company, Inc. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Manitowoc Earnings Beat Estimates in Q2, View Raised
Manitowoc reported adjusted earnings per share (EPS) of 75 cents in second-quarter 2023, beating the Zacks Consensus Estimate of 25 cents. The company reported an EPS of 21 cents in the year-ago quarter.
Including one-time items, the company reported an EPS of 57 cents in the quarter compared with the prior-year quarter’s 42 cents.
Manitowoc’s revenues were up 21.2% year over year to $603 million in the quarter under review. The top line surpassed the Zacks Consensus Estimate of $511 million. Favorable changes in foreign currency translation rates had an impact of $3.1 million on sales.
Orders in the reported quarter increased 26.8% year over year to $551 million. The backlog at the end of the quarter was $1,025 million, down 4.7% from the last quarter.
Operational Update
Cost of sales moved up 17.8% year over year to $480 million in the reported quarter. The gross profit was up 37% year over year to $123 million. The gross margin was 20.4% in the reported quarter compared with 18.1% in the prior-year quarter.
Engineering, selling and administrative expenses increased 11.3% year over year to $77 million. Total adjusted operating costs and expenses were $78 million in the quarter. We expected total adjusted operating costs and expenses of $75 million for the quarter.
Adjusted operating income was $45.5 million in the quarter, up from $20 million in the prior-year quarter. Adjusted EBITDA in the reported quarter was $60 million compared with $36 million in the prior-year quarter. The reported figure surpassed our projection of $37 million. The adjusted EBITDA margin rose to 10% from the year-ago quarter’s 6.8%.
Financial Update
Manitowoc reported cash and cash equivalents of $26 million at the end of the second quarter of 2023, down from $64 million at the 2022 end. The long-term debt was $381 million at the end of the quarter under review, up from $380 million at the 2022 end. The company used $17.2 million of cash in operating activities in the second quarter of 2023 against a cash inflow of $0.1 million in the last-year quarter.
Outlook
Backed by a solid second-quarter performance, Manitowoc expects revenues of $2.1-$2.2 billion for 2023, up from the previously stated $2-$2.1 billion. Adjusted EBITDA is anticipated between $150 million and $180 million, up from the $130-160 million mentioned earlier . The adjusted EPS is now expected between $1.10 and $1.70, whereas the company previously stated 35 cents to $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 -150% due to these changes.
VGM Scores
Currently, The Manitowoc Company, Inc. has a strong Growth Score of A, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top quintile 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 #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is The Manitowoc Company, Inc. (MTW) Down 5.9% Since Last Earnings Report?
It has been about a month since the last earnings report for The Manitowoc Company, Inc. (MTW - Free Report) . Shares have lost about 5.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is The Manitowoc Company, Inc. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Manitowoc Earnings Beat Estimates in Q2, View Raised
Manitowoc reported adjusted earnings per share (EPS) of 75 cents in second-quarter 2023, beating the Zacks Consensus Estimate of 25 cents. The company reported an EPS of 21 cents in the year-ago quarter.
Including one-time items, the company reported an EPS of 57 cents in the quarter compared with the prior-year quarter’s 42 cents.
Manitowoc’s revenues were up 21.2% year over year to $603 million in the quarter under review. The top line surpassed the Zacks Consensus Estimate of $511 million. Favorable changes in foreign currency translation rates had an impact of $3.1 million on sales.
Orders in the reported quarter increased 26.8% year over year to $551 million. The backlog at the end of the quarter was $1,025 million, down 4.7% from the last quarter.
Operational Update
Cost of sales moved up 17.8% year over year to $480 million in the reported quarter. The gross profit was up 37% year over year to $123 million. The gross margin was 20.4% in the reported quarter compared with 18.1% in the prior-year quarter.
Engineering, selling and administrative expenses increased 11.3% year over year to $77 million. Total adjusted operating costs and expenses were $78 million in the quarter. We expected total adjusted operating costs and expenses of $75 million for the quarter.
Adjusted operating income was $45.5 million in the quarter, up from $20 million in the prior-year quarter. Adjusted EBITDA in the reported quarter was $60 million compared with $36 million in the prior-year quarter. The reported figure surpassed our projection of $37 million. The adjusted EBITDA margin rose to 10% from the year-ago quarter’s 6.8%.
Financial Update
Manitowoc reported cash and cash equivalents of $26 million at the end of the second quarter of 2023, down from $64 million at the 2022 end. The long-term debt was $381 million at the end of the quarter under review, up from $380 million at the 2022 end. The company used $17.2 million of cash in operating activities in the second quarter of 2023 against a cash inflow of $0.1 million in the last-year quarter.
Outlook
Backed by a solid second-quarter performance, Manitowoc expects revenues of $2.1-$2.2 billion for 2023, up from the previously stated $2-$2.1 billion. Adjusted EBITDA is anticipated between $150 million and $180 million, up from the $130-160 million mentioned earlier . The adjusted EPS is now expected between $1.10 and $1.70, whereas the company previously stated 35 cents to $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 -150% due to these changes.
VGM Scores
Currently, The Manitowoc Company, Inc. has a strong Growth Score of A, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top quintile 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 #3 (Hold). We expect an in-line return from the stock in the next few months.