Carpenter Technology Earnings: Here’s Why Shares are Up Now

Carpenter Technology Corp. (NYSE:CRS) delivered a profit and missed Wall Street’s expectations, AND 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 0.55%.

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Carpenter Technology Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 14.81% to $0.69 in the quarter versus EPS of $0.81 in the year-earlier quarter.

Revenue: Rose 7.69% to $581.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Carpenter Technology Corp. reported adjusted EPS income of $0.69 per share. By that measure, the company missed the mean analyst estimate of $0.74. It missed the average revenue estimate of $616.06 million.

Quoting Management: “Our third quarter had gains and challenges,” said William A. Wulfsohn, President and Chief Executive Officer. “We achieved solid growth in our aerospace and energy markets. However, increased customer deferrals during the quarter, combined with low sales to distribution customers and a weak defense related mix, resulted in lower sales and operating income. While the recent pattern of these deferrals has slowed and order intake has increased, we now expect our full year earnings to be lower than previously forecasted. We are still targeting low double-digit growth in full year operating income, on an adjusted basis versus prior year. However, if Q4 has similar in-quarter mix and deferrals as we experienced in Q3, we may have difficulty achieving this target.”

Key Stats (on next page)…

Revenue increased 8.98% from $533.5 million in the previous quarter. EPS increased 11.29% 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 $0.93 to a profit $0.88. For the current year, the average estimate has moved down from a profit of $3.13 to a profit of $3.02 over the last ninety days.

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