Manitowoc (MTW) Earnings Beat Estimates in Q2, View Raised
The Manitowoc Company, Inc. MTW reported adjusted earnings per share (EPS) of 75 cents in second-quarter 2023, beating the Zacks Consensus Estimate of 25 cents. The company reported an EPS of 21 cents in the year-ago quarter.
Including one-time items, the company reported an EPS of 57 cents in the quarter compared with the prior-year quarter’s 42 cents.
Manitowoc’s revenues were up 21.2% year over year to $603 million in the quarter under review. The top line surpassed the Zacks Consensus Estimate of $511 million. Favorable changes in foreign currency translation rates had an impact of $3.1 million on sales.
Orders in the reported quarter increased 26.8% year over year to $551 million. The backlog at the end of the quarter was $1,025 million, down 4.7% from the last quarter.
Operational Update
Cost of sales moved up 17.8% year over year to $480 million in the reported quarter. The gross profit was up 37% year over year to $123 million. The gross margin was 20.4% in the reported quarter compared with 18.1% in the prior-year quarter.
Engineering, selling and administrative expenses increased 11.3% year over year to $77 million. Total adjusted operating costs and expenses were $78 million in the quarter. We expected total adjusted operating costs and expenses of $75 million for the quarter.
Adjusted operating income was $45.5 million in the quarter, up from $20 million in the prior-year quarter. Adjusted EBITDA in the reported quarter was $60 million compared with $36 million in the prior-year quarter. The reported figure surpassed our projection of $37 million. The adjusted EBITDA margin rose to 10% from the year-ago quarter’s 6.8%.
The Manitowoc Company, Inc. Price, Consensus and EPS Surprise
The Manitowoc Company, Inc. price-consensus-eps-surprise-chart | The Manitowoc Company, Inc. Quote
Financial Update
Manitowoc reported cash and cash equivalents of $26 million at the end of the second quarter of 2023, down from $64 million at the 2022 end. The long-term debt was $381 million at the end of the quarter under review, up from $380 million at the 2022 end. The company used $17.2 million of cash in operating activities in the second quarter of 2023 against a cash inflow of $0.1 million in the last-year quarter.
Outlook
Backed by a solid second-quarter performance, Manitowoc expects revenues of $2.1-$2.2 billion for 2023, up from the previously stated $2-$2.1 billion. Adjusted EBITDA is anticipated between $150 million and $180 million, up from the $130-160 million mentioned earlier . The adjusted EPS is now expected between $1.10 and $1.70, whereas the company previously stated 35 cents to $1.15.
Price Performance
In the past year, Manitowoc’s shares have gained 67.1% compared with the industry’s growth of 51%.
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Zacks Rank and Other Stocks to Consider
Manitowoc currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks from the Industrial Products sector are Worthington Industries, Inc. WOR, Astec Industries, Inc. ASTE and AGCO Corporation AGCO. WOR and ASTE sport a Zacks Rank #1 at present, and AGCO has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Worthington Industries has an average trailing four-quarter earnings surprise of 14.9%. The Zacks Consensus Estimate for WOR’s fiscal 2023 earnings is pegged at $5.65 per share. The consensus estimate for 2023 earnings has moved north by 22.6% in the past 60 days. Its shares gained 32.8% in the last year.
Astec has an average trailing four-quarter earnings surprise of 20%. The Zacks Consensus Estimate for ASTE’s 2023 earnings is pegged at $2.81 per share. The consensus estimate for 2023 earnings has moved 4% north in the past 60 days. ASTE’s shares gained 25.1% in the last year.
The Zacks Consensus Estimate for AGCO Corporation’s 2023 earnings per share is pegged at $15.07. The consensus estimate for 2023 earnings has moved 3% north in the past 60 days. It has a trailing four-quarter average earnings surprise of 16.4%. AGCO gained 20% in the last year.
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The Manitowoc Company, Inc. (MTW) : Free Stock Analysis Report
Worthington Industries, Inc. (WOR) : Free Stock Analysis Report
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