Carpenter Technology CRS reported adjusted earnings of 13 cents per share in second-quarter fiscal 2023, beating the Zacks Consensus Estimate of 12 cents. The company had reported an adjusted loss per share of 58 cents in the year-ago quarter.
Including one-time items, the company posted earnings per share of 13 cents against the year-ago quarter’s loss of 61 cents per share.
Net sales increased 46.2% year over year to $579 million in the reported quarter. The figure topped the Zacks Consensus Estimate of $545 million. The upside was driven by ongoing solid demand in most of the company’s end-use markets.
The company witnessed a year-over-year revenue increase of 49.6% in the Aerospace and Defense end-use market. Revenues in the Energy end-market were up 41.3% year over year. Revenues in the Medical end-use markets increased 55.2% year over year. Revenues in the Distribution markets decreased 1.4%, whereas the same for industrial and consumer end-use markets increased 18.4%. The transportation end-use market sales declined 4.2% year over year.
The cost of goods sold in second-quarter fiscal 2023 moved up 33% year over year to $509 million. The gross profit surged 434.4% year over year to $70 million. The adjusted operating income in the reported quarter was $22.6 million against the prior-year quarter’s operating loss of $29.8 million.
Carpenter Technology Corporation Price, Consensus and EPS Surprise
Carpenter Technology Corporation price-consensus-eps-surprise-chart | Carpenter Technology Corporation Quote
The Specialty Alloys Operations segment reported sales of $496 million compared with the prior-year quarter’s $331 million. The segment sold 49,442 pounds compared with the year-ago quarter’s 43,248 pounds. It posted an operating profit of $30.3 million against the operating loss of $20.3 million in the prior-year quarter.
The Performance Engineered Products’ net sales increased 24.5% year over year to $107 million. The segment sold 2,978 pounds, up 7.3% from the year-ago quarter’s figure. The segment reported an operating profit of $9.3 million compared with the prior-year quarter’s operating profit of $3 million.
Carpenter Technology ended the second quarter of fiscal 2023 with cash and cash equivalents of $20 million compared with $97 million at the end of fiscal 2022. The long-term debt was $692.4 million at the end of the quarter compared with $691.8 as of the end of fiscal 2022. Cash used in operating activities was $86 million in the quarter under review compared with $89 million in the prior-year quarter.
Backed by strong demand across each of its end-use markets and operational improvements, CRS expects accelerating sales momentum and improved margins in the forthcoming quarters.
Carpenter Technology’s shares have gained 63.2% in the past year compared with the industry’s growth of 65%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Carpenter Technology currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are CalMaine Foods, Inc. CALM, Reliance Steel & Aluminum Co. RS and Air Products and Chemicals, Inc. APD. CALM and RS currently flaunt a Zacks Rank #1 (Strong Buy), and APD carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CalMaine Foods’ fiscal 2023 earnings per share is pegged at $14.08, suggesting 417.7% growth from the year-ago reported figure. Earnings estimates have moved 73.8% north in the past 60 days. CALM has a trailing four-quarter earnings surprise of 15.3%, on average. Its shares have gained 31.4% in the past year.
The Zacks Consensus Estimate for Reliance Steel’s earnings per share is pegged at $28.65 for 2022, indicating a year-over-year growth rate of 29.5%. Earnings estimates have been revised 0.2% upward in the past 60 days. RS has a trailing four-quarter average surprise of 13.6%, on average. The company has gained 26.7% in a year.
The Zacks Consensus Estimate for Air Products’ 2023 earnings per share is pegged at $11.42, suggesting 9.7% growth from the year-ago reported figure. Earnings estimates have been unchanged in the past 60 days. APD has a trailing four-quarter earnings surprise of 1.7%, on average. Its shares have gained 14.7% in the past year.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Air Products and Chemicals, Inc. (APD) : Free Stock Analysis Report
Reliance Steel & Aluminum Co. (RS) : Free Stock Analysis Report
Cal-Maine Foods, Inc. (CALM) : Free Stock Analysis Report
Carpenter Technology Corporation (CRS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.