Manitowoc (MTW) to Report Q2 Earnings: What's in Store?
The Manitowoc Company Inc. MTW is scheduled to report its second-quarter 2023 results on Aug 7.
Q2 Estimates
The Zacks Consensus Estimate for MTW’s second-quarter revenues is pegged at $511.2 million, indicating growth of 2.8% from the year-ago quarter’s reported figure. The consensus mark for earnings per share is pegged at 25 cents, suggesting an improvement of 19.1% from the prior-year quarter’s reported figure.
The Manitowoc Company, Inc. Price and EPS Surprise
The Manitowoc Company, Inc. price-eps-surprise | The Manitowoc Company, Inc. Quote
Q1 Results
In the last reported quarter, Manitowoc’s earnings and revenues increased year over year. The bottom and top-line figures beat the Zacks Consensus Estimate. The company delivered a trailing four-quarter average earnings surprise of 256.3%.
Key Factors
In North America, demand from residential and non-residential construction is likely to have driven Manitowoc’s equipment demand in the second quarter. We expect quarterly revenues of $236 million for the Americas segment, indicating year-over-year growth of 4.3%.
Demand in the Middle East is expected to have been robust in the June-end quarter. Our model predicts the MEAP segment’s revenues to increase 2% in the quarter to $63 million.
We expect the EURAF segment’s revenues to be $209 million, indicating year-over-year growth of 0.3%.
Moreover, the pressing need to replace the aging crane fleet is expected to have supported demand for Manitowoc’s equipment. The company's focus on innovation is also likely to have aided the quarter’s performance by providing differentiated products that add value to customers.
However, MTW’s performance in the to-be-reported quarter is likely to have been impacted by higher steel, logistics and transportation costs (both ocean and land freight). Even though the company has raised prices to mitigate the impacts of cost inflation, it is not likely to have been adequate to counter the impacts of high costs. We expect total adjusted operating costs and expenses to increase 7.8% to $75 million in the quarter.
The company’s quarterly performance is also likely to have been affected by supply-chain shortages. Skilled labor constraints are expected to have been other headwinds. The semiconductor chip shortage has created significant issues throughout its supply base, which is anticipated to have weighed on the second quarter’s margin. Nevertheless, an improved sales performance is expected to have negated the impacts of these headwinds on margins.
What the Zacks Model Indicates
Our proven model doesn’t conclusively predict an earnings beat for Manitowoc this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here.
Earnings ESP: Manitowoc has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Price Performance
Shares of the company have gained 57.9% in the past year compared with the industry’s 33.6% growth.
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Stocks to Consider
Here are some Industrial Products stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases.
Terex Corporation TEX, set to report earnings on Aug 1, has an Earnings ESP of +2.14% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for Terex’s fiscal second-quarter earnings is pegged at $1.61 per share, suggesting a year-over-year improvement of 50.5%. The company has a trailing four-quarter surprise of 27.1%, on average.
Eaton Corporation plc ETN, set to release earnings on Aug 1, currently has an Earnings ESP of +0.36% and a Zacks Rank of 2.
The consensus estimate for ETN’s earnings for the second quarter is pegged at $2.11 per share. The company has a trailing four-quarter surprise of 2.5%, on average.
Illinois Tool Works ITW, set to release earnings on Aug 1, has an Earnings ESP of +0.54% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for ITW’s second-quarter earnings is pegged at $2.36 per share, suggesting a year-over-year improvement of 0.8%. The company has a trailing four-quarter surprise of 2.1%, on average.
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Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report
The Manitowoc Company, Inc. (MTW) : Free Stock Analysis Report
Eaton Corporation, PLC (ETN) : Free Stock Analysis Report
Terex Corporation (TEX) : Free Stock Analysis Report
