Crane Co. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
Crane Co. (NYSE:CR) shareholders are probably feeling a little disappointed, since its shares fell 6.2% to US$76.15 in the week after its latest yearly results. It looks like the results were a bit of a negative overall. While revenues of US$2.9b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 7.7% to hit US$3.08 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
View our latest analysis for Crane
Following the latest results, Crane's five analysts are now forecasting revenues of US$3.07b in 2021. This would be a satisfactory 4.5% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to leap 62% to US$5.02. In the lead-up to this report, the analysts had been modelling revenues of US$3.13b and earnings per share (EPS) of US$5.00 in 2021. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$88.60. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Crane at US$99.00 per share, while the most bearish prices it at US$83.00. This is a very narrow spread of estimates, implying either that Crane is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. Next year brings more of the same, according to the analysts, with revenue forecast to grow 4.5%, in line with its 4.0% annual growth over the past five years. Compare this with the wider industry (in aggregate), which analyst estimates suggest will see revenues grow 7.7% next year. So although Crane is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Crane's revenues are expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on Crane. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Crane going out to 2024, and you can see them free on our platform here..
And what about risks? Every company has them, and we've spotted 2 warning signs for Crane you should know about.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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