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Manitowoc's (MTW) Earnings Trump Estimates in Q2, Up Y/Y

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The Manitowoc Company, Inc. MTW delivered second-quarter 2019 adjusted earnings per share of 94 cents, beating the Zacks Consensus Estimate of 52 cents by a wide margin. The company had reported earnings per share of 40 cents in the prior-year quarter.

Including special items, the company reported earnings per share of $1.29 in the quarter, compared to the 27 cents per share recorded in the prior-year quarter.

Manitowoc’s revenues inched up 1.9% year over year to $504.7 million in the reported quarter. The top-line figure, however, missed the Zacks Consensus Estimate of $510 million. This upside was aided by higher crane and aftermarket shipments in the Americas. This was partially offset by prevalent weakness in the Middle East and unfavorable changes in foreign currency-exchange rates.

The Manitowoc Company, Inc. Price, Consensus and EPS Surprise

Operational Update

Cost of sales grew 1.16% year over year to $409.5 million in the April-June quarter. Gross profit was up 5.2% year over year to $95.2 million. Gross margin came in at 18.8% compared with 18.2% reported in the comparable period last year.

Engineering, selling and administrative expenses slipped 18.6% year over year to $50.5 million. Adjusted EBITDA was $53.3 million in the quarter compared with $37.5 million witnessed in the prior-year quarter. Adjusted operating income surged 57.6% year over year to $44.7 million in the quarter. North American revenue growth, favorable price realization, positive mix and cost-reduction actions were key drivers for this year-over-year upswing.

Financial Updates

Manitowoc reported cash and cash equivalents of $35 million at the end of the second quarter, down from $140 million recorded at the end of 2018. Long-term debt was $309.6 million as of Jun 30, 2019, compared with $266.7 million as of Dec 31, 2018.

Manitowoc generated $31.9 million of cash from operating activities during the three-month period ended Jun 30, 2019, compared with cash usage of $99.9 million recorded in the comparable period last year.

2019 Guidance

Manitowoc updated its 2019 revenue guidance to $1.88-$1.92 billion and EBITDA guidance to $140-$160 million. The company projects capital expenditures of $35 million for the current year.

Zacks Rank & Other Key Picks

Manitowoc currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the Industrial Products sector are Unifirst Corporation (UNF - Free Report) , Albany International Corporation AIN and Cintas Corporation CTAS. While Unifirst flaunts a Zacks Rank #1 (Strong Buy), Albany International and Cintas carry a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Unifirst has a projected earnings growth rate of 15.17% for the current year. The stock has rallied 4% in a year’s time.

Albany International has an estimated earnings growth rate of 32.3% for 2019. The company’s shares have gained 10% in the past year.

Cintas Corporation has an expected earnings growth rate of 11.15% for the ongoing year. The stock has appreciated 25% over the past year.

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