We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Manitowoc (MTW) Rides on Strong Demand and Innovation
Read MoreHide Full Article
The Manitowoc Company (MTW - Free Report) is well-poised to deliver improved results backed by improving demand in its markets. MTW continues to accelerate its investment in product development and innovation, as well as strengthen its aftermarket business, which will drive growth. Increased spending on infrastructure in the United States is also expected to be a major catalyst going forward.
MTW currently carries a Zacks Rank #2 (Buy).
Shares of the company have soared 79.6% in a year compared with the industry’s 48.7% increase. The Zacks Industrial Products sector has grown 17.6% and the S&P 500 composite has risen 19.7% in the same time frame.
Image Source: Zacks Investment Research
Solid Order Levels to Aid Results in 2023
Manitowoc reported adjusted earnings per share (EPS) of 75 cents in the second quarter of 2023, which marked a substantial improvement from the EPS of 21 cents reported in the year-ago quarter. Revenues were up 21.2% year over year to $603 million.
The company witnessed a 29% year-over-year improvement in orders in the quarter. Backlog at the end of the second quarter was $1.025 billion, up 8% from the year-ago quarter.
Backed by this momentum, Manitowoc expects revenues to be in the range of $2.1 billion to $2.2 billion. The company had reported revenues of $2 billion in 2022. Adjusted EBITDA is anticipated to be between $150 million and $180 million, higher than $143 million reported in 2022.
Adjusted EPS is expected to be between $1.10 and $1.70 in 2023. The midpoint of the guidance indicates year-over-year growth of 32%. Even though the company continues to face inflated costs, its pricing actions, solid order levels and efforts to cut costs will boost earnings.
Demand Prospects Remain Strong
In North America, demand from residential and non-residential construction is driving the demand for Manitowoc’s equipment. Due to the U.S. Infrastructure Investment and Jobs Act, the rising investment in roads, bridges, airports and waterways represents a massive opportunity. The company expects demand in the Middle East to be robust in the upcoming quarters. Qatar and Kuwait are also showing signs of growth. This bodes well for Manitowoc. Further, the need to replace the aging crane fleet will support the demand for Manitowoc’s equipment.
Aftermarket Sales, Innovation to Aid Growth
To achieve sustainable sales and earnings, Manitowoc is now placing greater emphasis on growing non-new machine sales (aftermarket parts, services, rentals, used cranes, and digital solutions). Growing this part of the business will provide it with more annuity-like revenue streams, which will help lessen the impact of the crane market cyclicality. This business also carries higher margin rates than new crane sales.
MTW continues to evaluate acquisition opportunities to accelerate product development programs in its all-terrain product line. Manitowoc’s innovation pipeline remains robust. Focus on innovation will continue to aid it in leading the industry by providing differentiated products of value to its customers.
Astec has an average trailing four-quarter earnings surprise of 20%. The Zacks Consensus Estimate for ASTE’s 2023 earnings is pegged at $2.81 per share. The consensus estimate for 2023 earnings has moved 4% north in the past 60 days. ASTE’s shares have gained 36.5% in the last year.
Caterpillar has an average trailing four-quarter earnings surprise of 18.5%. The Zacks Consensus Estimate for CAT’s 2023 earnings is pegged at $19.81 per share. The consensus estimate for 2023 earnings has moved 11.4% north in the past 60 days. Its shares have gained 49% in the last year.
The Zacks Consensus Estimate for EnerSys’ 2023 EPS is pegged at $7.78. The consensus estimate for 2023 earnings has moved 1% north in the past 60 days. It has a trailing four-quarter average earnings surprise of 10.3%. Shares of ENS have rallied 55% in the last year.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Manitowoc (MTW) Rides on Strong Demand and Innovation
The Manitowoc Company (MTW - Free Report) is well-poised to deliver improved results backed by improving demand in its markets. MTW continues to accelerate its investment in product development and innovation, as well as strengthen its aftermarket business, which will drive growth. Increased spending on infrastructure in the United States is also expected to be a major catalyst going forward.
MTW currently carries a Zacks Rank #2 (Buy).
Shares of the company have soared 79.6% in a year compared with the industry’s 48.7% increase. The Zacks Industrial Products sector has grown 17.6% and the S&P 500 composite has risen 19.7% in the same time frame.
Image Source: Zacks Investment Research
Solid Order Levels to Aid Results in 2023
Manitowoc reported adjusted earnings per share (EPS) of 75 cents in the second quarter of 2023, which marked a substantial improvement from the EPS of 21 cents reported in the year-ago quarter. Revenues were up 21.2% year over year to $603 million.
The company witnessed a 29% year-over-year improvement in orders in the quarter. Backlog at the end of the second quarter was $1.025 billion, up 8% from the year-ago quarter.
Backed by this momentum, Manitowoc expects revenues to be in the range of $2.1 billion to $2.2 billion. The company had reported revenues of $2 billion in 2022. Adjusted EBITDA is anticipated to be between $150 million and $180 million, higher than $143 million reported in 2022.
Adjusted EPS is expected to be between $1.10 and $1.70 in 2023. The midpoint of the guidance indicates year-over-year growth of 32%. Even though the company continues to face inflated costs, its pricing actions, solid order levels and efforts to cut costs will boost earnings.
Demand Prospects Remain Strong
In North America, demand from residential and non-residential construction is driving the demand for Manitowoc’s equipment. Due to the U.S. Infrastructure Investment and Jobs Act, the rising investment in roads, bridges, airports and waterways represents a massive opportunity. The company expects demand in the Middle East to be robust in the upcoming quarters. Qatar and Kuwait are also showing signs of growth. This bodes well for Manitowoc. Further, the need to replace the aging crane fleet will support the demand for Manitowoc’s equipment.
Aftermarket Sales, Innovation to Aid Growth
To achieve sustainable sales and earnings, Manitowoc is now placing greater emphasis on growing non-new machine sales (aftermarket parts, services, rentals, used cranes, and digital solutions). Growing this part of the business will provide it with more annuity-like revenue streams, which will help lessen the impact of the crane market cyclicality. This business also carries higher margin rates than new crane sales.
MTW continues to evaluate acquisition opportunities to accelerate product development programs in its all-terrain product line. Manitowoc’s innovation pipeline remains robust. Focus on innovation will continue to aid it in leading the industry by providing differentiated products of value to its customers.
Other Stocks to Consider
Some other top-ranked stocks from the Industrial Products sector are Astec Industries, Inc. (ASTE - Free Report) , Caterpillar Inc. (CAT - Free Report) and EnerSys (ENS - Free Report) . ASTE sports a Zacks Rank #1 (Strong Buy), and CAT and ENS has a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Astec has an average trailing four-quarter earnings surprise of 20%. The Zacks Consensus Estimate for ASTE’s 2023 earnings is pegged at $2.81 per share. The consensus estimate for 2023 earnings has moved 4% north in the past 60 days. ASTE’s shares have gained 36.5% in the last year.
Caterpillar has an average trailing four-quarter earnings surprise of 18.5%. The Zacks Consensus Estimate for CAT’s 2023 earnings is pegged at $19.81 per share. The consensus estimate for 2023 earnings has moved 11.4% north in the past 60 days. Its shares have gained 49% in the last year.
The Zacks Consensus Estimate for EnerSys’ 2023 EPS is pegged at $7.78. The consensus estimate for 2023 earnings has moved 1% north in the past 60 days. It has a trailing four-quarter average earnings surprise of 10.3%. Shares of ENS have rallied 55% in the last year.