Shares of Manitowoc Company, Inc. (MTW - Free Report) scaled a new 52-week high of $9.20 on Oct 3, before ending the day a tad lower at $9.18.
Investors are optimistic on this Zacks Rank #2 (Buy) company’s focus on consolidating manufacturing footprint and reducing cost of organizational structure. The company has delivered an impressive one-year return of about 92%. Manitowoc has a market cap of $1.29 billion. Average volume of shares traded in the last three months is pegged at approximately 1.74 million. We note that the company has an average positive earnings surprise of 55.9% in the trailing four quarters.
Year to date, the stock has surged 53.5% in a year’s time, higher than the S&P 500’s gain of 17.9%. Manitowoc has also outperformed the industry’s increase of 34.6% with respect to share price movement.
What's Driving Manitowoc?
Recently, the company announced plans to put into effect the reverse stock split at a ratio of 1-for-4 of its shares, which will reduce the number of shares from 300 million to 75 million and increase its price. Manitowoc will utilize its solid balance sheet to allocate capital for most accretive options such as de-leveraging, organic investments, stock buybacks and external growth.
The company’s shares also received a boost following upbeat second-quarter 2017 results. Its adjusted earnings improved 67% year over year to 5 cents per share, driven by focus on consolidating manufacturing footprint and reducing cost of organizational structure. Backlog for the quarter came in at $491 million as of Jun 30, 2017, up 25% year over year. Orders of $379.5 million were up 9% from the comparable period in the last year.
Manitowoc expects revenues to decline approximately 5-7% year over year in 2017. Its previous guidance was a decline of between 8% and 10%. Adjusted EBITDA is anticipated to lie between $59 million and $69 million (previous guidance was between $41 million and $59 million).
Manitowoc Company, Inc. Price and Consensus