Crane Co. (NYSE:CR) 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.
Crane Co. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 7.07% to $1.06 in the quarter versus EPS of $0.99 in the year-earlier quarter.
Revenue: Decreased 1.36% to $648.75 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Crane Co. reported adjusted EPS income of $1.06 per share. By that measure, the company missed the mean analyst estimate of $1.07. It missed the average revenue estimate of $673.24 million.
Quoting Management: “We are pleased to report second quarter EPS of $1.06 per share, excluding the MEI transaction costs,” said Crane Co. chief executive officer, Eric C. Fast. “On a slight decline in revenues, total Company operating margins expanded 200 basis points to a record 14.8%, led by solid execution in our Fluid Handling segment and strong productivity across the Company. Based on our expectation of record earnings this year and confidence in the future, we have increased our quarterly dividend by 7%. In connection with the pending acquisition of MEI, as previously reported, we are in negotiations with Bain Capital and Advantage Partners, the representatives of the owners of MEI, concerning the economic effects related to remedies required by the European Commission involving two Crane Payment Systems product lines.”
Key Stats (on next page)…
Revenue increased 3.37% from $627.57 million in the previous quarter. EPS were the same at $1.06 as the previous quarter.
Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.07 to a profit $1.08. For the current year, the average estimate has moved down from a profit of $4.23 to a profit of $4.22 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)