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Manitowoc (MTW) Earnings Beat, Sales Miss Estimates in Q4

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The Manitowoc Company, Inc. (MTW - Free Report) reported fourth-quarter 2019 adjusted earnings per share of 35 cents, beating the Zacks Consensus Estimate of 28 cents by a margin of 25%. The bottom line also marked a 119% improvement over 16 cents per share reported in the prior-year quarter. The company delivered solid quarterly results can be attributed to continued operational improvements.
 
Including special items, the company reported earnings per share of 26 cents in the fourth quarter against a loss of $2.20 per share in the prior-year quarter.

Manitowoc’s revenues were down 10% to $463 million from the prior-year quarter figure of $515 million. The top line also missed the Zacks Consensus Estimate of $494 million.

Orders in the fourth quarter were at $472.0 million, a 2% decline from the prior year on a currency neutral basis. Backlog as of the fourth quarter end was at $475 million.

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

 

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

The Manitowoc Company, Inc. price-consensus-eps-surprise-chart | The Manitowoc Company, Inc. Quote

Operational Update

Cost of sales declined 10% year over year to $383 million in the reported quarter. Gross profit was down 10% year over year to $80 million. Gross margin came in at 17.3% flat with the prior-year quarter.

Engineering, selling and administrative expenses fell 9% year over year to $61 million. Adjusted EBITDA was $30.9 million in the quarter compared with $31.1 million reported in the prior-year quarter.

Adjusted operating income was $22.1 million in the quarter, flat compared with the year-ago quarter. Adjusted operating margin came in at 4.8% compared with 4.3% in the comparable period last year.
 
Financial Updates

Manitowoc reported cash and cash equivalents of $199.3 million at 2019 end, up from the $140 million recorded as of Dec 31, 2018. Long-term debt was $308 million as of Dec 31, 2019, compared with $266.7 million as of Dec 31, 2018. Adjusted operating cash flow was $148 million in 2019, compared with cash utilization of $3 million in the year ago.

2019 Results

Manitowoc reported adjusted earnings per share of $1.89 in 2019, up 195% from the prior-year figure of 64 cents. Earnings beat the Zacks Consensus Estimate of $1.84. Including one-time items, the bottom line came in at $1.31 against a loss per share of $1.88 in 2018. Sales dipped 1% year over year to around $1.83 billion and also missed the Zacks Consensus Estimate of $1.86 billion.

2020 Guidance

Manitowoc’s revenue guidance for 2020 is at $1.6-$1.7 billion and EBITDA guidance is at $85-$115 million. The company projects capital expenditures of around $30 million for the current year.

Share Price Performance



Over the past year, Manitowoc’s shares have fallen 23.5%, against the industry’s growth of 0.3%.

Zacks Rank & Key Picks

Manitowoc currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Industrial Products sector are Sharps Compliance Corp , Lindsay Corporation (LNN - Free Report) and Northwest Pipe Company (NWPX - Free Report) . All of these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Sharps Compliance has an expected earnings growth rate of 767% for the current year. The stock has appreciated 53% in a year’s time.

Lindsay has a projected earnings growth rate of 85.3% for 2020. The company’s shares have rallied 22% over the past year.

Northwest Pipe Company has an estimated earnings growth rate of 19.5% for the ongoing year. The company’s shares have gained 38% in the past year.

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