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Why Is The Manitowoc Company, Inc. (MTW) Up 5.7% 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 added about 5.7% in that time frame, underperforming 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 the most recent earnings report in order to get a better handle on the important catalysts.
Manitowoc Q3 Earnings & Revenues Top Estimates, Rise Y/Y
Manitowoc reported adjusted earnings per share (EPS) of 22 cents in third-quarter 2023, beating the Zacks Consensus Estimate of a loss of 1 cent per share. Compared with EPS of 10 cents in the third quarter of 2022, earnings in the quarter under review marked a substantial improvement of 120%.
Including one-time items, the company reported an EPS of 29 cents in the third quarter of 2023 compared with the year-ago quarter’s EPS of 7 cents.
Manitowoc’s revenues were up 14.6% year over year to $521 million in the quarter under review. The top line surpassed the Zacks Consensus Estimate of $469 million. Favorable changes in foreign currency translation rates had an impact of $14.5 million on sales. Sales of non-new machine sales increased 21.2% year over year to $154.7 million.
Orders in the reported quarter increased 12.5% year over year to $531 million. The backlog at the end of the quarter was $1,028 million, which increased 0.3% from the second quarter of 2023.
Operational Update
The cost of sales moved up 11.5% year over year to $424 million in the reported quarter. The gross profit was up 30% year over year to $97 million. The gross margin was 18.6% in the reported quarter compared with 16.3% in the prior-year quarter.
Engineering, selling and administrative expenses increased 18% year over year to $77.4 million. Total adjusted operating costs and expenses were $78 million in the quarter.
Adjusted operating income was $18.9 million in the quarter, up from $8.7 million in the year-ago quarter. Adjusted EBITDA in the reported quarter was $33.3 million compared with $24 million in the prior-year quarter. The adjusted EBITDA margin rose to 6.4% from the year-ago quarter’s 5.3%.
Cash Position & Balance Sheet
Manitowoc reported cash and cash equivalents of $40 million at the end of the third quarter of 2023, down from $64 million at 2022 end. The long-term debt was $368.5 million at the end of the quarter under review, down from $380 million at 2022 end.
The company generated $26.3 million in cash in operating activities in the third quarter of 2023 against a cash outflow of $6.2 million in the third quarter of 2023.
On Oct 31, 2023, MTW’s Board of Directors authorized a new share repurchase program of up to $35 million of the company’s common shares. This program has no expiration date and replaces the authorization under the previous program.
Outlook
Backed by the solid performance in the first three quarters of the year, Manitowoc expects revenues of $2.175-$2.225 billion for 2023, up from the previously stated $2.1-$2.2 billion. Adjusted EBITDA is anticipated to be between $160 million and $180 million, up from the $150-$180 million mentioned earlier.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -37.06% due to these changes.
VGM Scores
Currently, The Manitowoc Company, Inc. has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. 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.
Performance of an Industry Player
The Manitowoc Company, Inc. belongs to the Zacks Manufacturing - Construction and Mining industry. Another stock from the same industry, Terex (TEX - Free Report) , has gained 0.9% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
Terex reported revenues of $1.29 billion in the last reported quarter, representing a year-over-year change of +15.1%. EPS of $1.75 for the same period compares with $1.20 a year ago.
For the current quarter, Terex is expected to post earnings of $1.40 per share, indicating a change of +4.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.8% over the last 30 days.
Terex has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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Why Is The Manitowoc Company, Inc. (MTW) Up 5.7% 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 added about 5.7% in that time frame, underperforming 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 the most recent earnings report in order to get a better handle on the important catalysts.
Manitowoc Q3 Earnings & Revenues Top Estimates, Rise Y/Y
Manitowoc reported adjusted earnings per share (EPS) of 22 cents in third-quarter 2023, beating the Zacks Consensus Estimate of a loss of 1 cent per share. Compared with EPS of 10 cents in the third quarter of 2022, earnings in the quarter under review marked a substantial improvement of 120%.
Including one-time items, the company reported an EPS of 29 cents in the third quarter of 2023 compared with the year-ago quarter’s EPS of 7 cents.
Manitowoc’s revenues were up 14.6% year over year to $521 million in the quarter under review. The top line surpassed the Zacks Consensus Estimate of $469 million. Favorable changes in foreign currency translation rates had an impact of $14.5 million on sales. Sales of non-new machine sales increased 21.2% year over year to $154.7 million.
Orders in the reported quarter increased 12.5% year over year to $531 million. The backlog at the end of the quarter was $1,028 million, which increased 0.3% from the second quarter of 2023.
Operational Update
The cost of sales moved up 11.5% year over year to $424 million in the reported quarter. The gross profit was up 30% year over year to $97 million. The gross margin was 18.6% in the reported quarter compared with 16.3% in the prior-year quarter.
Engineering, selling and administrative expenses increased 18% year over year to $77.4 million. Total adjusted operating costs and expenses were $78 million in the quarter.
Adjusted operating income was $18.9 million in the quarter, up from $8.7 million in the year-ago quarter. Adjusted EBITDA in the reported quarter was $33.3 million compared with $24 million in the prior-year quarter. The adjusted EBITDA margin rose to 6.4% from the year-ago quarter’s 5.3%.
Cash Position & Balance Sheet
Manitowoc reported cash and cash equivalents of $40 million at the end of the third quarter of 2023, down from $64 million at 2022 end. The long-term debt was $368.5 million at the end of the quarter under review, down from $380 million at 2022 end.
The company generated $26.3 million in cash in operating activities in the third quarter of 2023 against a cash outflow of $6.2 million in the third quarter of 2023.
On Oct 31, 2023, MTW’s Board of Directors authorized a new share repurchase program of up to $35 million of the company’s common shares. This program has no expiration date and replaces the authorization under the previous program.
Outlook
Backed by the solid performance in the first three quarters of the year, Manitowoc expects revenues of $2.175-$2.225 billion for 2023, up from the previously stated $2.1-$2.2 billion. Adjusted EBITDA is anticipated to be between $160 million and $180 million, up from the $150-$180 million mentioned earlier.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -37.06% due to these changes.
VGM Scores
Currently, The Manitowoc Company, Inc. has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. 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.
Performance of an Industry Player
The Manitowoc Company, Inc. belongs to the Zacks Manufacturing - Construction and Mining industry. Another stock from the same industry, Terex (TEX - Free Report) , has gained 0.9% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
Terex reported revenues of $1.29 billion in the last reported quarter, representing a year-over-year change of +15.1%. EPS of $1.75 for the same period compares with $1.20 a year ago.
For the current quarter, Terex is expected to post earnings of $1.40 per share, indicating a change of +4.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.8% over the last 30 days.
Terex has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.