Carpenter Technology Earnings: Here’s Why Investors are Buying Shares Now

Carpenter Technology Corp. (NYSE:CRS) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 10.48%.

Carpenter Technology Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 3.75% to $0.77 in the quarter versus EPS of $0.80 in the year-earlier quarter.

Revenue: Decreased 4.94% to $611.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Carpenter Technology Corp. reported adjusted EPS income of $0.77 per share. By that measure, the company beat the mean analyst estimate of $0.7. It missed the average revenue estimate of $625.98 million.

Quoting Management: “We finished the fiscal year with a solid fourth quarter in a challenging environment,” said William A. Wulfsohn, President and Chief Executive Officer. “Our intense focus on continuous improvement allowed us to offset SAO variable production inflation on a cost per ton basis for the fourth consecutive year. Also, a great team effort in the continued integration of the Latrobe operation, which exceeded our targeted deal synergies by almost two times, helped contribute to the quarterly performance.”

Key Stats (on next page)…

Revenue increased 5.23% from $581.4 million in the previous quarter. EPS increased 24.19% from $0.62 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.79 to a profit $0.76. For the current year, the average estimate has moved down from a profit of $2.79 to a profit of $2.69 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)