Carpenter Technology (CRS) Earnings Beat Estimates in Q1
Carpenter Technology Corporation CRS reported adjusted earnings of 88 cents per share in first-quarter fiscal 2024, beating the Zacks Consensus Estimate of adjusted earnings of 75 cents per share. It had posted an adjusted loss of 14 cents in the year-ago quarter.
Including one-time items, the company reported earnings per share of 88 cents against the year-ago quarter’s loss of 14 cents.
Net sales increased 24.7% year over year to $652 million in the reported quarter. The upside was driven by a 12% year over year increase in shipment volume and the ongoing solid demand in most of the company’s end-use markets. However, the figure missed the Zacks Consensus Estimate of $702 million.
CRS witnessed a year-over-year revenue increase of 42.2% in the Aerospace and Defense end-use market. Revenues in the Energy end-market were up 59.6%. Revenues in the Medical end-use markets rose 33.7%. Revenues in the Distribution markets decreased 14.1%, whereas the same for industrial and consumer end-use markets increased 16.1%. The transportation end-use market’s revenues rose 23.2%.
Carpenter Technology Corporation Price, Consensus and EPS Surprise
Carpenter Technology Corporation price-consensus-eps-surprise-chart | Carpenter Technology Corporation Quote
Operational Results
The cost of goods sold in first-quarter fiscal 2023 moved up 12.8% year over year to $528 million. The gross profit surged 126.5% year over year to $124 million. The adjusted operating income in the reported quarter was $69 million compared with the prior-year quarter’s $8.3 million.
Segmental Performance
The Specialty Alloys Operations segment reported sales of $570 million compared with the prior-year quarter’s $447 million. We predicted the segment’s sales to be $602 million. The segment sold 49,992 pounds compared with the year-ago quarter’s 44,562 pounds. The reported figure missed our estimate of 52,632 pounds. CRS posted an operating profit of $80.8 million compared with the prior-year quarter’s $19.9 million. Our estimate for the segment’s operating profit was $83.7 million.
The Performance Engineered Products’ net sales increased 9.2% year over year to $102 million. The reported figure surpassed our estimate of $100 million. The segment sold 2,302 pounds compared with the year-ago quarter’s 2,326 pounds. It was lower than our projection of 2,682 pounds. The segment reported an operating profit of $9.1 million compared with the prior-year quarter’s $6.3 million. Our estimate for the segment’s operating profit was $11.6 million.
Financials
Carpenter Technology ended first-quarter fiscal 2024 with cash and cash equivalents of $18 million compared with $45 million at the end of fiscal 2023. The long-term debt was $693 million at the end of the quarter compared with $693 as of the end of fiscal 2023. Cash flow from operating activities was $7.4 million in the quarter under review against cash outflow of $78 million in the prior-year quarter.
Price Performance
Shares of the company have gained 71% in the past year compared with the industry’s growth of 29.6%.
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Zacks Rank & Stocks to Consider
Carpenter Technology currently has a Zacks Rank 3 (Hold).
Some better-ranked stocks from the basic materials space are The Andersons Inc. ANDE, Yara International ASA YARIY and Koppers Holdings Inc. KOP. ANDE sports a Zacks Rank #1 (Strong Buy) at present, and YARIY and KOP carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Andersons has an average trailing four-quarter earnings surprise of 64.4%. The Zacks Consensus Estimate for ANDE’s 2023 earnings is pegged at 52 cents per share. The consensus estimate for 2023 earnings has been unchanged in the past 60 days. Its shares gained 43.2% in the last year.
Yara International has an average trailing four-quarter earnings surprise of 56%. The Zacks Consensus Estimate for YARIY’s fiscal 2023 earnings is pegged at $1.27 per share. The consensus estimate for 2023 earnings has moved 9% north in the past 60 days. Its shares gained 5.2% in the last year.
Koppers has an average trailing four-quarter earnings surprise of 21.7%. The Zacks Consensus Estimate for KOP’s 2023 earnings is pegged at $1.27 per share. Earnings estimates have been unchanged in the past 60 days. KOP’s shares gained 47.4% in the last year.
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