Manitowoc (MTW) Q3 Earnings & Revenues Top Estimates, Rise Y/Y
The Manitowoc Company, Inc. MTW reported adjusted earnings per share (EPS) of 22 cents in third-quarter 2023, beating the Zacks Consensus Estimate of a loss of 1 cent per share. Compared with EPS of 10 cents in the third quarter of 2022, earnings in the quarter under review marked a substantial improvement of 120%.
Including one-time items, the company reported an EPS of 29 cents in the third quarter of 2023 compared with the year-ago quarter’s EPS of 7 cents.
Manitowoc’s revenues were up 14.6% year over year to $521 million in the quarter under review. The top line surpassed the Zacks Consensus Estimate of $469 million. Favorable changes in foreign currency translation rates had an impact of $14.5 million on sales. Sales of non-new machine sales increased 21.2% year over year to $154.7 million.
Orders in the reported quarter increased 12.5% year over year to $531 million. The backlog at the end of the quarter was $1,028 million, which increased 0.3% from the second quarter of 2023.
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
The cost of sales moved up 11.5% year over year to $424 million in the reported quarter. The gross profit was up 30% year over year to $97 million. The gross margin was 18.6% in the reported quarter compared with 16.3% in the prior-year quarter.
Engineering, selling and administrative expenses increased 18% year over year to $77.4 million. Total adjusted operating costs and expenses were $78 million in the quarter.
Adjusted operating income was $18.9 million in the quarter, up from $8.7 million in the year-ago quarter. Adjusted EBITDA in the reported quarter was $33.3 million compared with $24 million in the prior-year quarter. The adjusted EBITDA margin rose to 6.4% from the year-ago quarter’s 5.3%.
Cash Position & Balance Sheet
Manitowoc reported cash and cash equivalents of $40 million at the end of the third quarter of 2023, down from $64 million at 2022 end. The long-term debt was $368.5 million at the end of the quarter under review, down from $380 million at 2022 end.
The company generated $26.3 million in cash in operating activities in the third quarter of 2023 against a cash outflow of $6.2 million in the third quarter of 2023.
On Oct 31, 2023, MTW’s Board of Directors authorized a new share repurchase program of up to $35 million of the company’s common shares. This program has no expiration date and replaces the authorization under the previous program.
Outlook
Backed by the solid performance in the first three quarters of the year, Manitowoc expects revenues of $2.175-$2.225 billion for 2023, up from the previously stated $2.1-$2.2 billion. Adjusted EBITDA is anticipated to be between $160 million and $180 million, up from the $150-$180 million mentioned earlier.
Price Performance
In the past year, Manitowoc’s shares have gained 38.9% compared with the industry’s 5% growth.
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Zacks Rank and Stocks to Consider
Manitowoc currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are Brady BRC, Applied Industrial Technologies AIT and Emerson Electric Co. EMR. BRC currently sports a Zacks Rank #1 (Strong Buy), and AIT and EMR have a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Brady’s 2023 EPS is pegged at $3.62. The consensus estimate for 2023 earnings has moved 13% north in the past 60 days and suggests year-over-year growth of 9.9%. The company has a trailing four-quarter average earnings surprise of 7.2%. Shares of BRC have rallied 13% in the last year.
Applied Industrial has an average trailing four-quarter earnings surprise of 15%. The Zacks Consensus Estimate for AIT’s 2023 earnings is pegged at $9.13 per share, which indicates year-over-year growth of 2%. Estimates have moved up 2% in the past 60 days. The company’s shares have gained 24% in the last year.
Emerson has an average trailing four-quarter earnings surprise of 7.4%. The Zacks Consensus Estimate for EMR’s 2023 earnings is pegged at $4.45 per share. The consensus estimate for 2023 earnings has moved 1% north in the past 60 days. EMR shares have gained 1% in the last year.
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