U.S. Markets closed
  • S&P Futures

    4,139.50
    +9.00 (+0.22%)
     
  • Dow Futures

    34,080.00
    +85.00 (+0.25%)
     
  • Nasdaq Futures

    12,581.50
    +36.25 (+0.29%)
     
  • Russell 2000 Futures

    1,954.60
    +4.70 (+0.24%)
     
  • Crude Oil

    78.44
    -0.03 (-0.04%)
     
  • Gold

    1,890.40
    -0.30 (-0.02%)
     
  • Silver

    22.41
    -0.01 (-0.04%)
     
  • EUR/USD

    1.0734
    +0.0016 (+0.1503%)
     
  • 10-Yr Bond

    3.6530
    -0.0210 (-0.57%)
     
  • Vix

    19.63
    +0.97 (+5.20%)
     
  • GBP/USD

    1.2083
    +0.0013 (+0.1051%)
     
  • USD/JPY

    131.3510
    +0.0150 (+0.0114%)
     
  • BTC-USD

    22,465.10
    -808.69 (-3.47%)
     
  • CMC Crypto 200

    516.92
    -19.97 (-3.72%)
     
  • FTSE 100

    7,885.17
    +20.46 (+0.26%)
     
  • Nikkei 225

    27,510.37
    -96.09 (-0.35%)
     

Carpenter Technology's (CRS) Q2 Earnings & Sales Beat Estimates

Carpenter Technology Corporation CRS reported an adjusted loss per share of 58 cents in second-quarter fiscal 2022 (ended Dec 31, 2021), narrower than the Zacks Consensus Estimate of a loss of 63 cents. The company had reported an adjusted loss per share of 61 cents in the year-ago period.

Including one-time items, the company posted a loss per share of 61 cents compared with the year-ago quarter’s loss of $1.76 per share.

Net sales increased 13% year over year to $396 million in the reported quarter. The figure surpassed the Zacks Consensus Estimate of $353 million.

The company witnessed a year-over-year revenue decline of 9.7% in the Aerospace and Defense end-use market. Revenues in the Energy end-market were down 9.6% year on year. Revenues in the Medical end-use markets increased 39% year over year. Revenues in the distribution and industrial end-use markets climbed 34% and 18%, year over year, respectively. Transportation end-use market sales also increased 10.4% year over year.

Operational Results

The cost of goods sold in second-quarter fiscal 2022 moved up 12% year over year to $383 million. Gross profit came in at $13.1 million compared with the year-ago quarter’s $6 million. The adjusted operating loss in the reported quarter was $29.8 million compared with the prior-year quarter’s $32.3 million.

Carpenter Technology Corporation Price, Consensus and EPS Surprise

Carpenter Technology Corporation Price, Consensus and EPS Surprise
Carpenter Technology Corporation Price, Consensus and EPS Surprise

Carpenter Technology Corporation price-consensus-eps-surprise-chart | Carpenter Technology Corporation Quote

Segment Performance

The Specialty Alloys Operations (SAO) segment reported sales of $330.8 million compared with the prior-year quarter’s $300.4 million. The segment sold 43,248 pounds compared with the year-ago quarter’s 38,602 pounds. It posted an operating loss of $20.3 million compared with $11.6 million in the prior-year quarter.

The Performance Engineered Products’ (PEP) net sales increased 56.4% year over year to $86 million during the fiscal second quarter. The segment sold 2,776 pounds, up 81% from the year-ago quarter’s figure. The segment reported an operating profit of $3 million against the prior-year quarter’s operating loss of $7.2 million.

Financials

Carpenter Technology ended the fiscal second quarter with cash and cash equivalents of $97 million compared with $287 million at the end of fiscal 2021. The long-term debt was $695 million at the end of second-quarter fiscal 2022, in line with the fiscal 2021 end’s figure. Cash utilized in operating activities was $136 million in the six months ended as of Dec 31, 2021, against the cash inflow of $172 million in the prior-year period.

Free cash outflow in the reported quarter was $116 million against the cash inflow of $51 million in the year-ago quarter.

Carpenter Technology expects to benefit from the increasing demand trends across its end-use markets and strong customer relationships. Repairing is progressing well at its Reading press, which was impacted by a mechanical failure and led to an unplanned outage. The company expects the press to be operational in the fiscal third quarter.

Price Performance

Carpenter Technology’s shares have declined 4% in the past year against the industry's return of 7.4%.

Zacks Investment Research
Zacks Investment Research

Image Source: Zacks Investment Research

Zacks Rank & Stocks to Consider

Carpenter Technology currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the basic materials space are Commercial Metals Company CMC, Haynes International, Inc. HAYN and AdvanSix Inc. ASIX. Each stock sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Commercial Metals has an expected earnings growth rate of 62% for the current fiscal year. The Zacks Consensus Estimate for CMC’s current-year earnings has been revised 40% upward in the past 60 days.

Commercial Metals’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average being 13.13%. CMC has gained 73% over a year.

Haynes has an expected earnings growth rate of 395.8% for fiscal 2022. The Zacks Consensus Estimate for fiscal 2022 earnings has been revised 128% upward in the past 60 days.

Haynes’ bottom line beat the Zacks Consensus Estimate in three of the trailing four quarters, the average surprise being 116.8%. HAYN has rallied 67% over a year.

AdvanSix has an expected earnings growth rate of 7.4% for the current year. The Zacks Consensus Estimate for current-year earnings has moved 5.3% north in the past 60 days.

AdvanSix’s bottom line beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 47%. ASIX has soared 83% over a year.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Carpenter Technology Corporation (CRS) : Free Stock Analysis Report

Commercial Metals Company (CMC) : Free Stock Analysis Report

Haynes International, Inc. (HAYN) : Free Stock Analysis Report

AdvanSix (ASIX) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research