U.S. markets open in 4 hours 8 minutes
  • S&P Futures

    4,253.00
    -33.50 (-0.78%)
     
  • Dow Futures

    33,780.00
    -201.00 (-0.59%)
     
  • Nasdaq Futures

    13,394.50
    -128.75 (-0.95%)
     
  • Russell 2000 Futures

    1,982.40
    -19.30 (-0.96%)
     
  • Crude Oil

    89.46
    -1.04 (-1.15%)
     
  • Gold

    1,767.00
    -4.20 (-0.24%)
     
  • Silver

    19.12
    -0.34 (-1.74%)
     
  • EUR/USD

    1.0088
    -0.0004 (-0.04%)
     
  • 10-Yr Bond

    2.8800
    0.0000 (0.00%)
     
  • Vix

    20.61
    +0.71 (+3.57%)
     
  • GBP/USD

    1.1874
    -0.0059 (-0.50%)
     
  • USD/JPY

    136.5420
    +0.6800 (+0.50%)
     
  • BTC-USD

    21,735.64
    -1,718.11 (-7.33%)
     
  • CMC Crypto 200

    516.28
    -41.45 (-7.43%)
     
  • FTSE 100

    7,528.49
    -13.36 (-0.18%)
     
  • Nikkei 225

    28,930.33
    -11.81 (-0.04%)
     

Manitowoc's (MTW) Earnings & Revenues Miss Estimates in Q2

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·4 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

The Manitowoc Company, Inc. MTW reported adjusted earnings per share (EPS) of 21 cents in second-quarter 2022, missing the Zacks Consensus Estimate of 36 cents per share. The bottom line declined 65% year over year.

Including one-time items, the company reported EPS of 42 cents in the quarter compared with the prior-year quarter’s 50 cents per share.

Manitowoc’s revenues were up 7.2% year over year to $497 million in the quarter under review. The top line missed the Zacks Consensus Estimate of $552 million. Unfavorable changes in foreign currency translation rates had an impact of $27.9 million on sales.

Orders in the reported quarter declined 19.2% year over year to $434 million. Backlog at the end of the quarter was $948 million, down 8.3% from the last 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 and EPS Surprise

The Manitowoc Company, Inc. price-consensus-eps-surprise-chart | The Manitowoc Company, Inc. Quote

 

Operational Update

Cost of sales moved up 9.5% year over year to $408.5 million in the reported quarter. Gross profit was down 2% year over year to $89 million. The gross margin was 17.8% in the reported quarter compared with 19.5% in the prior-year quarter.

Engineering, selling and administrative expenses increased 9% year over year to $69 million. Adjusted operating income was $20 million in the quarter, down 35% from $31 million in the prior-year quarter. Adjusted EBITDA in the reported quarter was $36 million compared with $41 million in the prior-year quarter. Adjusted EBITDA margin contracted to 7.3% from the year-ago quarter’s 8.8%

Financial Update

Manitowoc reported cash and cash equivalents of $43 million at the end of the second quarter of 2022, down from $75 million at the 2021-end. Long-term debt was $379.9 million at the end of the quarter under review, down from $399.9 million at the 2021-end. The company generated $0.1 million of cash in operating activities in the second quarter of 2022 compared with $8.9 million in the last-year quarter.

Outlook

Manitowoc expects 2022 results to be at the lower end of its adjusted EBITDA guidance. It anticipates inflation, rising interest rates, and geopolitical tensions will continue to hurt margins in the second half of the year. MTW had earlier provided revenue guidance in the range of $2.0 billion to $2.2 billion, adjusted EBITDA at $130-$160 million and adjusted EPS between 65 cents and $1.35.

Price Performance

In the past year, Manitowoc’s shares have fallen 53.6% compared with the industry’s decline of 13.3%.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Zacks Rank and Stocks to Consider

Manitowoc currently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks from the Industrial Products sector are Greif Inc. GEF, Titan International TWI and MRC Global MRC. All of these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Greif has an estimated earnings growth rate of 37% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 17%.

Greif pulled off a trailing four-quarter earnings surprise of 22.9%, on average. GEF’s shares have risen 17% in the past year.

Titan International has an estimated earnings growth rate of 165% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 43%.

Titan International pulled off a trailing four-quarter earnings surprise of 56.4%, on average. TWI’s shares have soared 101% in a year.

MRC Global has an expected earnings growth rate of 259% for 2022. The Zacks Consensus Estimate for the current year’s earnings moved up 24% in the past 60 days.

MRC Global has a trailing four-quarter earnings surprise of 140.8%, on average. MRC’s shares have surged 35% in the past year.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
The Manitowoc Company, Inc. (MTW) : Free Stock Analysis Report
 
Titan International, Inc. (TWI) : Free Stock Analysis Report
 
Greif, Inc. (GEF) : Free Stock Analysis Report
 
MRC Global Inc. (MRC) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research