Crane Co. (NYSE: CR) reported stronger-than-expected Q4 results, topping both earnings and revenue estimates driven by strong business momentum across all segments.
Based in Connecticut, U.S., Crane Co. is a leading manufacturer of engineered industrial products. Shares of the company have gained 30% in the past year.
Q4 Performance
Q4 adjusted earnings of $1.25 per share grew 35.9% year-over-year and exceeded analysts’ expectations of $1.13 per share. The company reported earnings of $0.92 per share for the prior-year period.
Furthermore, sales jumped 13% year-over-year to $771 million and exceeded consensus estimates of $745.86 million. The increase in sales reflected a surge in core sales, which increased 13%.
Additionally, operating profit margin improved 340 bps to 11.3% driven by higher volumes and a favorable mix.
FY2022 GUIDANCE
Based on robust Q4 results, management issued the financial guidance for FY2022.
The company forecasts adjusted earnings in the range of $7.00 to $7.40 per share, reflecting a 10% year-over-year growth, while the consensus estimate is pegged at $7.23 per share. Sales are forecast to be approximately $3.3 billion, versus the consensus estimate of $3.36 billion. Further, core sales are projected to grow between 4% and 6%.
CEO Comments
Looking ahead into FY2022, Crane CEO, Max Mitchell, commented, “Our performance momentum continues, and we are confident in the strength of our three growth platforms and our demonstrated ability to successfully deliver strong results in the current environment.”
He further added, “earnings momentum, along with consistently strong cash flow, will enable us to drive further value through continued organic investments, as well as through capital deployment and inorganic growth in 2022 and beyond.”
Analysts Recommendation
The Wall Street community is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on 2 Buys and 1 Hold. The average Crane Company stock price projection of $122.67 implies a 20.9% upside potential to current levels.
TipRanks’ Smart Score
Crane scores an 8 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
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