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Manitowoc (MTW) Q1 Earnings & Sales Top Estimates, Up Y/Y

Zacks Equity Research

The Manitowoc Company, Inc. MTW delivered first-quarter 2019 adjusted earnings per share of 8 cents, beating the Zacks Consensus Estimate of a loss of 2 cents by a wide margin. Further, the company reversed its prior-year quarter’s loss of 12 cents per share.
Including special items, the company reported loss of 75 cents per share in first-quarter 2019, wider than the 28 cents per share recorded in the prior-year quarter.

Manitowoc’s revenues increased 8.3% year over year to $418 million in the reported quarter. The top-line figure also surpassed the Zacks Consensus Estimate of $394 million. This upside was driven by higher crane shipments in the Americas and EURAF regions, along with favorable price realization. This was partially offset by unfavorable changes in foreign-currency exchange rates. 

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 6.3% to $337.8 million in the first quarter from $317.7 million in the prior-year quarter. Gross profit climbed 17.2% year over year to $80.2 million. Gross margin came in at 19.2% compared to prior-year quarter’s 17.7%.
Engineering, selling and administrative expenses edged down 1.6% year over year to $59.4 million. Adjusted EBITDA was $29.6 million in the quarter compared with $17.1 million witnessed in the prior-year quarter. Adjusted operating income was $20.8 million in the quarter, which significantly increased from $8 million reported in the year-ago period.  Organic growth in the North American market, favorable mix, global price initiatives and cost-reduction actions were the key drivers for this year-over-year improvement.
Financial Updates
Manitowoc reported cash and cash equivalents of $49 million at the end of the first quarter, down from $140 million recorded at the end of 2018. Long-term debt was $342 million as of Mar 31, 2019, compared with $267 million as of Dec 31, 2018.

The company used $267.3 million of cash in operating activities during the three-month period ended Mar 31, 2019, compared with cash usage of $168.4 million recorded in the comparable period last year.

2019 Guidance
Manitowoc updated its 2019 revenue guidance at $1.90-$1.97 billion and EBITDA guidance at $130-$150 million. The company projects capital expenditures of $35 million for the current year.

Share Price Performance

Over the past year, Manitowoc has lost around 29.2% compared with the industry’s decline of 15.4%.

Zacks Rank & Stocks to Consider

Manitowoc currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the Industrial Products sector are DMC Global Inc. BOOM, Lawson Products, Inc. LAWS and Roper Technologies, Inc. ROP, each sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

DMC Global has an estimated earnings growth rate of 77.3% for the ongoing year. The company’s shares have soared 68.7%, in the past year.

Lawson Products has a stellar expected earnings growth rate of 102.5% for the current year. The stock has appreciated 34.8% in a year’s time.

Roper Technologies has a projected earnings growth rate of 7.79% for 2019. The company’s shares have gained 26.1%, over the past year.

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