The Manitowoc Company, Inc.
(MTW - Free Report
) posted fourth-quarter 2017 adjusted loss per share of 15 cents, narrower than the prior-year quarter’s loss of 94 cents. Results came in wider than the Zacks Consensus Estimate of a loss of 6 cents per share.
Including special items, the company posted earnings of 98 cents in the reported quarter. It had posted a loss of 92 cents per share in the year-ago quarter.
Manitowoc witnessed a 27% year-over-year improvement in sales to $482 million in the reported quarter. Higher demand, primarily in the United States and European markets drove revenues in the quarter. Approximately 40% of unit revenues in the quarter stemmed from new products introduced since becoming a stand-alone crane company. Additionally, revenues beat the Zacks Consensus Estimate of $423 million.
The Manitowoc Company, Inc. Price, Consensus and EPS Surprise
Manitowoc ended 2017 with cash and temporary investments of $119.2 million compared with $69.9 million at year-end 2016. Long-term debt was $267 million as of Dec 31, 2017, compared with $269 million as of Dec 31, 2016. The company generated $78.5 million of cash in operating activities in 2017 compared with cash usage of $122.4 million recorded in the prior year.
Fiscal 2017 Performance
Manitowoc reported a loss of 26 cents per share in fiscal 2017 compared with a loss of $1.75 witnessed in the prior fiscal. The loss was wider than the Zacks Consensus Estimate of 17 cents per share.
Including one-time items, Manitowoc reported earnings per share of 28 cents against a loss of $10.70 per share in fiscal 2016.
Revenues declined 2% year over year to $1.58 billion, but surpassed the Zacks Consensus Estimate of $1.52 billion. However, the performance was better than expected as the company anticipated revenues to decline approximately 5-7% year over year in 2017.
Manitowoc initiated full-year 2018 financial guidance. Adjusted EBITDA is anticipated to lie between $96 million and $116 million. Depreciation is projected at approximately $39 million. Capital expenditures are estimated at approximately $25-$30 million.
Share Price Performance
Over the past year, Manitowoc has underperformed the industry
with respect to price performance. The stock gained around 53.2%, while the industry recorded growth of 37.4%.
Zacks Rank & Stocks to Consider
Currently, Manitowoc carries a Zacks Rank #4 (Sell).
Applied Industrial Technologies has an expected long-term growth of 12%. Its shares have surged 12% in the past year.
H&E Equipment Services has expected long-term growth of 18.6%. It shares have rallied 49% in a year’s time.
Dover has expected long-term growth of 13%. Over the past year, its shares have gone up 22%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.