Carpenter Technology (CRS, $$48.78) disappoints on fiscal Q1 earnings and revenue
Carpenter Technology’s fiscal first quarter earnings and revenue missed analysts’ expectations
The manufacturer of stainless steels and corrosion-resistant alloys reported adjusted earnings of 85 cents per share in the first quarter of fiscal 2020 (ended Sep 30, 2019), which fell short of the Zacks Consensus Estimate of 89 cents. However, the figure is still higher than the year-ago quarter’s 65 cents per share.
Operating profit in the quarter rose +32.8% to $59.8 million. Operating margin climbed to 10.2% in the quarter, compared to the year-earlier quarter’s 7.9%.
Carpenter’s net sales increased +2.3% year over year to $585.4 million for the quarter, but missed the Zacks Consensus Estimate of $593 million. Volumes fell - 5% year-over-year .
Sales from the company’s Specialty Alloys Operations segment increased year-over-year by + 3.3%. The segment sold 60,044 pounds, which is -4.2% lower than the prior-year quarter. Operating profit in this segment increased +53.4% year over year to $81 million, on the back of product mix strength.
Net sales in the Performance Engineered Products’ segment declined -2.1% year over year for the quarter. The segment sold 3,250 pounds, +19% higher from the year-ago quarter. The segment incurred an operating loss of -$2 million.
Carpenter’s cash and cash equivalents of $25 million at the end of the fiscal first quarter, was higher than the $17 million recorded at the prior-year quarter’s end. Cash from operating activities declined to $0.7 million for the quarter from the year-earlier quarter’s $9.4 million.
CRS in -2.48% downward trend, sliding for three consecutive days on February 07, 2025
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where CRS declined for three days, in of 272 cases, the price declined further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for CRS moved out of overbought territory on January 27, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 46 similar instances where the indicator moved out of overbought territory. In of the 46 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on January 30, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on CRS as a result. In of 86 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for CRS turned negative on January 30, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 38 similar instances when the indicator turned negative. In of the 38 cases the stock turned lower in the days that followed. This puts the odds of success at .
CRS moved below its 50-day moving average on February 11, 2025 date and that indicates a change from an upward trend to a downward trend.
CRS broke above its upper Bollinger Band on January 13, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
The 10-day moving average for CRS crossed bullishly above the 50-day moving average on January 13, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 14 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CRS advanced for three days, in of 319 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 287 cases where CRS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 75, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. CRS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.482) is normal, around the industry mean (6.330). P/E Ratio (35.555) is within average values for comparable stocks, (26.634). CRS's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.714). Dividend Yield (0.004) settles around the average of (0.101) among similar stocks. P/S Ratio (3.317) is also within normal values, averaging (305.236).
Industry description
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a manufacturer of specialty metals
Industry MetalFabrication