The Manitowoc Company, Inc. MTW posted fourth-quarter 2017 adjusted loss per share of 15 cents, narrower than the prior-year quarter's loss of 94 cents. Results came in wider than the Zacks Consensus Estimate of a loss of 6 cents per share.
Including special items, the company posted earnings of 98 cents in the reported quarter. It had posted a loss of 92 cents per share in the year-ago quarter.
Manitowoc witnessed a 27% year-over-year improvement in sales to $482 million in the reported quarter. Higher demand, primarily in the United States and European markets drove revenues in the quarter. Approximately 40% of unit revenues in the quarter stemmed from new products introduced since becoming a stand-alone crane company. Additionally, revenues beat the Zacks Consensus Estimate of $423 million.
The Manitowoc Company, Inc. Price, Consensus and EPS Surprise
The Manitowoc Company, Inc. price-consensus-eps-surprise-chart | The Manitowoc Company, Inc. Quote
Cost of sales surged 20% to $400 million in the reported quarter from $333 million in the prior-year quarter. Gross profit soared 78% year over year to $81million. Gross margin expanded 490 basis points to 16.9%.
Engineering, selling and administrative expenses went up 10% year over year to $68 million. Adjusted EBITDA was $22.2 million against a loss of $5.7 million in the prior-year quarter. Adjusted operating income was $13.2 million in the quarter. Backlog
Backlog for the quarter came in at $606.6 million as of 2017 end, up 87% from 2016. Fourth-quarter orders were at $620.2 million, up 78% from the prior-year quarter. This can be attributed to improving customer sentiment in the North American market, along with continued market share gains.
Manitowoc ended 2017 with cash and temporary investments of $119.2 million compared with $69.9 million at year-end 2016. Long-term debt was $267 million as of Dec 31, 2017, compared with $269 million as of Dec 31, 2016. The company generated $78.5 million of cash in operating activities in 2017 compared with cash usage of $122.4 million recorded in the prior year.
Fiscal 2017 Performance
Manitowoc reported a loss of 26 cents per share in fiscal 2017 compared with a loss of $1.75 witnessed in the prior fiscal. The loss was wider than the Zacks Consensus Estimate of 17 cents per share.
Including one-time items, Manitowoc reported earnings per share of 28 cents against a loss of $10.70 per share in fiscal 2016.
Revenues declined 2% year over year to $1.58 billion, but surpassed the Zacks Consensus Estimate of $1.52 billion. However, the performance was better than expected as the company anticipated revenues to decline approximately 5-7% year over year in 2017.
Manitowoc initiated full-year 2018 financial guidance. Adjusted EBITDA is anticipated to lie between $96 million and $116 million. Depreciation is projected at approximately $39 million. Capital expenditures are estimated at approximately $25-$30 million.
Share Price Performance
Over the past year, Manitowoc has underperformed the industry with respect to price performance. The stock gained around 53.2%, while the industry recorded growth of 37.4%.
Zacks Rank & Stocks to Consider
Currently, Manitowoc carries a Zacks Rank #4 (Sell).
Some better-ranked companies in the industrial product space include Applied Industrial Technologies, Inc. AIT , H&E Equipment Services, Inc. HEES and Dover Corporation DOV . All these stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Applied Industrial Technologies has an expected long-term growth of 12%. Its shares have surged 12% in the past year.
H&E Equipment Services has expected long-term growth of 18.6%. It shares have rallied 49% in a year's time.
Dover has expected long-term growth of 13%. Over the past year, its shares have gone up 22%.
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