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Crane (CR) Boosts Operations with Westlock Controls Buyout

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Crane Co.CR recently announced that it acquired the assets of New Jersey-based Westlock Controls from Emerson Electric Co. EMR . Emerson Electric is a diversified global manufacturing and technology company based in St. Louis, MO. The buyout price was approximately $40 million in cash.

Post the release of first-quarter 2017 results on Apr 24, shares of Crane yielded a 1.86% return, outperforming the gain of 0.05% recorded by the Zacks categorized Diversified Operations industry. In the quarter, the company's earnings and revenues exceeded their respective Zacks Consensus Estimates by 5% and 3.2%.

As revealed, Westlock Controls specializes in manufacturing and distribution of switchboxes, position transmitters and other solutions for use in networking, monitoring and controlling process valves. The business generated revenues of $32 million in 2016.

We believe the acquisition is consistent with Crane's inorganic expansionary policy and will enable the company to meet its goals. For 2017, the company increased the lower-end of its previously issued earnings guidance of $4.30−$4.55 per share by 5 cents to $4.35−$4.55. Core sales will likely be flat to up 2%. In the years ahead, the company anticipates benefiting from increasing demand for productivity solutions in Payment & Merchandising Technologies segment, high growth aerospace programs in Aerospace & Electronics, recovering orders in Fluid Handling and strengthening end-markets in Engineered Materials.

Over the last seven days, the company's earnings estimates increased 1.1% to $4.50 for 2017 and 1.6% to $4.95 for 2018. These estimates represent year-over-year growth of 6.32% for 2017 and 9.97% for 2018.

Crane Company Price and Consensus

Crane Company Price and Consensus | Crane Company Quote

Zacks Rank & Key Picks

With a market capitalization of $4.7 billion, Crane currently carries a Zacks Rank #2 (Buy). A couple of other stocks worth considering in the diversified operations industry include Leucadia National Corporation LUK and 3M Company MMM . While Leucadia National sports a Zacks Rank #1 (Strong Buy), 3M Company carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here .

Leucadia National Corporation's earnings estimates for 2017 and 2018 were revised upward over the last 60 days.

3M Company performed well in the last four quarters, with an average positive earnings surprise of 1.34%. Also, earnings estimates for 2017 and 2018 improved in the last 60 days.

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3M Company (MMM): Free Stock Analysis Report

Leucadia National Corporation (LUK): Free Stock Analysis Report

Crane Company (CR): Free Stock Analysis Report

Emerson Electric Company (EMR): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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