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Manitowoc (MTW) Beats on Q4 Earnings & Revenue Estimates

Zacks Equity Research

The Manitowoc Company, Inc. MTW delivered fourth-quarter 2018 adjusted earnings per share of 16 cents, which beat the Zacks Consensus Estimate of 5 cents by a wide margin. Further, the company reversed its prior-year quarter’s loss of 15 cents per share.


Including special items, the company reported loss of $2.20 per share in fourth-quarter 2018 compared with 98 cents per share recorded in the prior-year quarter.


Manitowoc’s revenues increased 7% year over year to $515 million in fourth-quarter 2018. The top line surpassed the Zacks Consensus Estimate of $487.3 million.The company witnessed improved demand in the Americas driven by higher shipments of cranes for the commercial construction and energy end markets. This was partially offset by lower demand in the Benelux and Middle-East regions. Unfavorable changes in foreign currency exchange rates negatively impacted sales in the reported quarter.


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 rose 6% to $426 million in the reported quarter from $400 million in the prior-year quarter. Gross profit climbed 10% year over year to $89 million. Gross margin expanded 40 basis points to 17.3%.


Engineering, selling and administrative expenses remained flat at $67 million. Adjusted EBITDA was $31 million in the quarter under review compared with $24 million witnessed in the prior-year quarter. Adjusted operating income was $22.2 million in the quarter, which increased from $14.7 million reported in the year-ago period.




Backlog at fiscal 2018 end came in at $671 million, up 11% from 2017-end. Fourth-quarter 2018 orders came in at $485.7 million, down 22% from the year-ago quarter. Full-year 2018 orders improved 3% year over year to $1,910.7 million.


Financial Updates


Manitowoc reported cash and cash equivalents of $140 million at the end of fiscal 2018, up from $123 million recorded at the end of 2017. Long-term debt was $267 million as of Dec 31, 2018, flat compared with Dec 31, 2017.

The company used $513 million of cash in operating activities during 2018, compared with cash usage of $325 million reported last year.


2018 Results


Manitowoc reported adjusted earnings per share of 64 cents in 2018 against a loss per share of 27 cents reported in the prior year. Earnings surpassed the Zacks Consensus Estimate of 53 cents. Sales increased 17% year over year to $1.85 billion, coming ahead of the Zacks Consensus Estimate of $1.82 billion.


2019 Guidance


Manitowoc initiated 2019 revenue guidance at $1.85-$1.95 billion and EBITDA guidance at $125-$145 million. Manitowoc projects capital expenditures of $35 million for the current year.


Share Price Performance



Over the past year, Manitowoc has lost around 50% compared with the industry’s decline of 12%.


Zacks Rank & Key Picks


Manitowoc currently carries a Zacks Rank #4 (Sell).


A few better-ranked stocks in the Industrial Products sector are Axon Enterprise, Inc AAXN, Alarm.com Holdings, Inc. ALRM and EnerSys ENS. While Axon and Alarm.com currently flaunt a Zacks Rank #1 (Strong Buy), EnerSys carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.


Axon has an expected earnings growth rate of 14.5% for 2019. The company’s shares have rallied 105% in the past year.


Alarm.com has an expected earnings growth rate of 7.8% for 2019.  The stock has climbed 80% in a year’s time.


EnerSys has an expected earnings growth rate of 9.5% for 2019. Its shares have gained 12% in the past year.


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