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.
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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 72, placing this stock better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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: CRS's P/B Ratio (4.892) is very high in comparison to the industry average of (1.779). CRS has a moderately high P/E Ratio (43.130) as compared to the industry average of (21.012). CRS's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.251). Dividend Yield (0.005) settles around the average of (0.097) among similar stocks. P/S Ratio (2.909) is also within normal values, averaging (2.926).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average 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 average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of specialty metals
Industry MetalFabrication