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The Manitowoc Company, Inc. (MTW) Down 11.2% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for The Manitowoc Company, Inc. (MTW - Free Report) . Shares have lost about 11.2% 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 its most recent earnings report in order to get a better handle on the important drivers.
Manitowoc Q4 Earnings Miss Estimates, Decline Y/Y
Manitowoc reported adjusted earnings per share (EPS) of 9 cents in fourth-quarter 2023, missing the Zacks Consensus Estimate of 19 cents. Compared with an EPS of 74 cents in the fourth quarter of 2022, earnings in the quarter under review marked a substantial slump of 87.8% due to lower sales. Including one-time items, the company reported a loss of 23 cents per share in the fourth quarter of 2023 compared with the year-ago quarter’s loss of $4.10.
Manitowoc’s revenues were down 4% year over year to $596 million in the quarter under review. The top line, however, surpassed the Zacks Consensus Estimate of $575 million. Favorable changes in foreign currency translation rates had an impact of $9 million on sales.
Orders in the reported quarter decreased 32.8% year over year to $475.7 million. The backlog at the end of the fourth quarter was $917 million, which decreased 10.8% from the third quarter of 2023.
Operational Update
The cost of sales declined 1.7% year over year to $497 million in the reported quarter. The gross profit was down 15% year over year to $99 million. The gross margin was 16.6% in the reported quarter compared with 18.7% in the year-ago quarter.
Engineering, selling and administrative expenses increased 11% year over year to $88.2 million. Total adjusted operating costs and expenses were $78 million in the quarter, down 2% year over year.
Adjusted operating income was $20.9 million in the quarter, down 42.6% from $36.4 million in the year-ago quarter. Adjusted EBITDA in the reported quarter was $36.5 million compared with $51.5 million in the year-ago quarter. The adjusted EBITDA margin declined to 6.1% from the year-ago quarter’s 8.3%.
Cash Position & Balance Sheet
Manitowoc reported cash and cash equivalents of $34 million at the end of 2023, down from $64 million at 2022 end. The long-term debt was $359 million at the end of 2023, down from $380 million at 2022 end.
The company generated $63 million in cash in operating activities in 2023 compared with $77 million in 2023.
2023 Results
Manitowoc reported adjusted EPS of $1.52 in 2023, which was 43% higher than the EPS of $1.06 reported in 2022. The bottom-line figure, however, missed the Zacks Consensus Estimate of $1.62.
Including one-time items, the company reported EPS of $1.09 in 2023 against a loss of $3.51 per share in 2022.
Manitowoc’s revenues were up 9.6% year over year to $2.23 billion in 2023. The top line surpassed the consensus estimate of $2.21 billion. Favorable changes in foreign currency translation rates had an impact of $15.5 million on sales.
Guidance for 2024
Manitowoc expects revenues in the range of $2.275 billion to $2.375 billion in 2024. This guidance is backed by a strong backlog and strong global demand for mobile cranes. However, the European tower crane market is expected to remain challenging.
Adjusted EBITDA is projected to be between $150 million and $180 million. The company expects to report adjusted EPS between 95 cents and $1.55 in 2024.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -28% due to these changes.
VGM Scores
Currently, The Manitowoc Company, Inc. has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, 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.
Performance of an Industry Player
The Manitowoc Company, Inc. is part of the Zacks Manufacturing - Construction and Mining industry. Over the past month, Caterpillar (CAT - Free Report) , a stock from the same industry, has gained 5.8%. The company reported its results for the quarter ended December 2023 more than a month ago.
Caterpillar reported revenues of $17.07 billion in the last reported quarter, representing a year-over-year change of +2.9%. EPS of $5.23 for the same period compares with $3.86 a year ago.
For the current quarter, Caterpillar is expected to post earnings of $5.09 per share, indicating a change of +3.7% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.6% over the last 30 days.
Caterpillar has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
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The Manitowoc Company, Inc. (MTW) Down 11.2% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for The Manitowoc Company, Inc. (MTW - Free Report) . Shares have lost about 11.2% 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 its most recent earnings report in order to get a better handle on the important drivers.
Manitowoc Q4 Earnings Miss Estimates, Decline Y/Y
Manitowoc reported adjusted earnings per share (EPS) of 9 cents in fourth-quarter 2023, missing the Zacks Consensus Estimate of 19 cents. Compared with an EPS of 74 cents in the fourth quarter of 2022, earnings in the quarter under review marked a substantial slump of 87.8% due to lower sales. Including one-time items, the company reported a loss of 23 cents per share in the fourth quarter of 2023 compared with the year-ago quarter’s loss of $4.10.
Manitowoc’s revenues were down 4% year over year to $596 million in the quarter under review. The top line, however, surpassed the Zacks Consensus Estimate of $575 million. Favorable changes in foreign currency translation rates had an impact of $9 million on sales.
Orders in the reported quarter decreased 32.8% year over year to $475.7 million. The backlog at the end of the fourth quarter was $917 million, which decreased 10.8% from the third quarter of 2023.
Operational Update
The cost of sales declined 1.7% year over year to $497 million in the reported quarter. The gross profit was down 15% year over year to $99 million. The gross margin was 16.6% in the reported quarter compared with 18.7% in the year-ago quarter.
Engineering, selling and administrative expenses increased 11% year over year to $88.2 million. Total adjusted operating costs and expenses were $78 million in the quarter, down 2% year over year.
Adjusted operating income was $20.9 million in the quarter, down 42.6% from $36.4 million in the year-ago quarter. Adjusted EBITDA in the reported quarter was $36.5 million compared with $51.5 million in the year-ago quarter. The adjusted EBITDA margin declined to 6.1% from the year-ago quarter’s 8.3%.
Cash Position & Balance Sheet
Manitowoc reported cash and cash equivalents of $34 million at the end of 2023, down from $64 million at 2022 end. The long-term debt was $359 million at the end of 2023, down from $380 million at 2022 end.
The company generated $63 million in cash in operating activities in 2023 compared with $77 million in 2023.
2023 Results
Manitowoc reported adjusted EPS of $1.52 in 2023, which was 43% higher than the EPS of $1.06 reported in 2022. The bottom-line figure, however, missed the Zacks Consensus Estimate of $1.62.
Including one-time items, the company reported EPS of $1.09 in 2023 against a loss of $3.51 per share in 2022.
Manitowoc’s revenues were up 9.6% year over year to $2.23 billion in 2023. The top line surpassed the consensus estimate of $2.21 billion. Favorable changes in foreign currency translation rates had an impact of $15.5 million on sales.
Guidance for 2024
Manitowoc expects revenues in the range of $2.275 billion to $2.375 billion in 2024. This guidance is backed by a strong backlog and strong global demand for mobile cranes. However, the European tower crane market is expected to remain challenging.
Adjusted EBITDA is projected to be between $150 million and $180 million. The company expects to report adjusted EPS between 95 cents and $1.55 in 2024.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -28% due to these changes.
VGM Scores
Currently, The Manitowoc Company, Inc. has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, 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.
Performance of an Industry Player
The Manitowoc Company, Inc. is part of the Zacks Manufacturing - Construction and Mining industry. Over the past month, Caterpillar (CAT - Free Report) , a stock from the same industry, has gained 5.8%. The company reported its results for the quarter ended December 2023 more than a month ago.
Caterpillar reported revenues of $17.07 billion in the last reported quarter, representing a year-over-year change of +2.9%. EPS of $5.23 for the same period compares with $3.86 a year ago.
For the current quarter, Caterpillar is expected to post earnings of $5.09 per share, indicating a change of +3.7% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.6% over the last 30 days.
Caterpillar has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.