CR
Crane CO
NYSE
8-K: Crane Company Exceeds Expectations in Q2 2024, Raises Full-Year EPS Guidance
Sentiment:
Quarterly Report
29 July 2024 4:45 PM
Crane Company reported strong second-quarter results, driven by core sales growth and strategic investments, leading to an increase in full-year adjusted EPS guidance.
Better than expected
The company's second-quarter results exceeded expectations with a 64% increase in GAAP EPS and an 18% increase in adjusted EPS.
The company raised its full-year adjusted EPS guidance, indicating better-than-expected performance and future outlook.
Summary
- Crane Company announced its second-quarter 2024 results, showing a 14% increase in sales to $581 million, with 9% core sales growth.
- The company's GAAP earnings per diluted share (EPS) reached $1.23, a 64% increase compared to the same quarter last year, while adjusted EPS was $1.30, up 18%.
- Operating profit increased by 53% to $97 million, and adjusted operating profit rose by 22% to $103 million.
- The company's Aerospace & Electronics segment saw a 22% increase in sales, driven by 16% core sales growth and a 6% benefit from acquisitions.
- Process Flow Technologies experienced a 13% sales increase, with 7% core sales growth and a 7% benefit from acquisitions.
- Engineered Materials sales decreased by 8% compared to the prior year.
- Crane Company raised the midpoint of its full-year adjusted EPS guidance by $0.15, narrowing the range to $4.95-$5.15.
- The company's total sales growth for the year is now expected to be approximately 11%, with core sales growth of 5% to 7%.
Sentiment
Score: 9
Explanation: The document conveys a very positive sentiment due to strong financial results, increased guidance, and positive management commentary. The company's performance is exceeding expectations, and the future outlook is optimistic.
Positives
- Crane Company demonstrated strong sales growth across its key segments, particularly in Aerospace & Electronics and Process Flow Technologies.
- The company's profitability improved significantly, with substantial increases in both operating profit and adjusted operating profit.
- The increase in full-year adjusted EPS guidance reflects management's confidence in the company's performance and future prospects.
- The company's balance sheet remains strong, providing flexibility for future investments and acquisitions.
- The order backlog for Aerospace & Electronics and Process Flow Technologies has increased, indicating strong future demand.
Negatives
- The Engineered Materials segment experienced an 8% decrease in sales compared to the prior year.
- Operating profit margin for Engineered Materials declined by 320 basis points, primarily due to lower volumes.
- Corporate costs are expected to be $80 million, an increase from the prior estimate of $75 million.
Risks
- The company faces risks related to changes in global economic conditions, including inflationary pressures and geopolitical risks.
- There are risks associated with information systems and technology network failures, as well as breaches in data security.
- The company's ability to source components and raw materials from suppliers could be disrupted.
- Demand for the company's products is variable and subject to factors beyond their control.
- The company faces risks from environmental liabilities, costs, litigation, and violations.
Future Outlook
Crane Company raised the midpoint of its full-year adjusted EPS guidance by $0.15, narrowing the range to $4.95-$5.15. Total sales growth for the year is expected to be approximately 11%, with core sales growth of 5% to 7%.
Management Comments
- Max Mitchell, Crane's CEO, stated that the team delivered 18% adjusted EPS growth, driven by 9% core sales growth and solid core operating leverage.
- Mr. Mitchell also noted the company has incredible momentum across key verticals and a strong balance sheet for future investments.
- Rich Maue, Crane's CFO, added that the company ended the quarter with a strong balance sheet and low leverage, providing significant capital deployment optionality.
Industry Context
Crane's strong performance, particularly in Aerospace & Electronics and Process Flow Technologies, aligns with the current demand in these sectors. The company's strategic investments and acquisitions are contributing to its growth, positioning it well within its competitive landscape.
Comparison to Industry Standards
- Crane's 9% core sales growth is strong compared to many industrial peers, indicating effective market positioning and execution.
- The 18% adjusted EPS growth is also impressive, suggesting efficient cost management and operational leverage.
- Companies like Honeywell and Parker Hannifin, which also operate in aerospace and industrial sectors, have seen similar growth trends, but Crane's specific segment performance is notable.
- The increase in backlog for Aerospace & Electronics to $815 million is a positive indicator of future revenue, comparing favorably to other companies in the sector.
Stakeholder Impact
- Shareholders will benefit from the increased EPS and positive outlook, potentially leading to higher stock value.
- Employees may experience increased job security and potential for growth due to the company's strong performance.
- Customers will benefit from the company's continued investment in innovation and technology-led solutions.
- Suppliers may see increased business opportunities due to the company's growth.
Next Steps
- Crane Company will hold a conference call on July 30, 2024, to discuss the second quarter financial results.
- The company will continue to focus on strategic investments and acquisitions to further amplify growth.
Key Dates
- April 3, 2023: Completion of the separation transaction from Crane Holdings, Co.
- June 30, 2024: End of the second quarter of 2024, for which financial results are reported.
- July 29, 2024: Date of the earnings announcement and press release.
- July 30, 2024: Date of the conference call to discuss the second quarter financial results.
Keywords
Crane Company, Financial Results, Earnings, EPS, Sales Growth, Aerospace & Electronics, Process Flow Technologies, Adjusted EPS Guidance, Operating Profit, Acquisitions
CR
Crane CO
NYSE
Sector: Industrials
Filings with Classifications
Better than expected
1 May 2025 3:31 PM
Quarterly Report
- The company's net sales, operating profit, and earnings per share all increased compared to the same period last year.
- The company's operating margin improved significantly.
- The company completed the sale of its Engineered Materials segment, which is expected to improve future profitability.
Better than expected
14 March 2025 6:38 AM
Proxy Statement
- Final 2024 financial and operational results, adjusted for strategic actions, were substantially above our original financial targets for the year driven by a combination of a better-than-expected recovery in certain end markets, consistent and strong operational execution, and substantial benefits from strategic growth investments.
Better than expected
27 February 2025 9:47 PM
Annual Report
- The company's net sales increased by 14.5% to $2,131.2 million.
- Operating profit increased by 42.1% to $355.8 million.
Better than expected
27 January 2025 4:31 PM
Quarterly Report
- The company's Q4 2024 EPS and adjusted EPS both increased by 58%, significantly exceeding expectations.
- The company's full year 2024 adjusted EPS grew by 28%, significantly exceeding expectations.
- The company's 2025 adjusted EPS guidance of $5.30-$5.60, representing 12% growth at the midpoint, is better than expected.
Worse than expected
2 December 2024 4:36 PM
Divestiture Announcement
- The company has lowered its full-year 2024 adjusted EPS guidance from continuing operations to $4.71 to $4.86, reflecting the impact of the divestiture.
Better than expected
31 October 2024 4:14 PM
Quarterly Report
- The company's net sales, operating profit, and net income from continuing operations all showed significant year-over-year increases, indicating better than expected performance.
- The company's core sales growth and contributions from acquisitions exceeded expectations, driving the positive results.
- The company's operating profit margin improved due to higher pricing, productivity gains, and operating leverage, indicating better than expected profitability.
Better than expected
28 October 2024 4:39 PM
Quarterly Report
- The company's earnings per share and adjusted earnings per share exceeded expectations.
- Sales growth was higher than anticipated, driven by strong core sales.
- The company raised its full-year adjusted EPS guidance, indicating confidence in future performance.
Better than expected
31 July 2024 4:09 PM
Quarterly Report
- The company's net sales, operating profit, and net income from continuing operations all showed significant increases compared to the same period last year, indicating better than expected results.
Better than expected
29 July 2024 4:45 PM
Quarterly Report
- The company's second-quarter results exceeded expectations with a 64% increase in GAAP EPS and an 18% increase in adjusted EPS.
- The company raised its full-year adjusted EPS guidance, indicating better-than-expected performance and future outlook.
Better than expected
1 May 2024 4:28 PM
Quarterly Report
- The company's net sales, operating profit, and net income from continuing operations all showed significant year-over-year increases, indicating better than expected performance.
- The Aerospace & Electronics segment's 25.4% sales growth was particularly strong, exceeding expectations.
- The company's strategic acquisitions contributed positively to the overall results, further driving better than expected performance.
Better than expected
22 April 2024 4:27 PM
Quarterly Report
- The company raised its full-year adjusted EPS guidance, indicating better than expected performance.
- The company reported a 5% core sales growth and an 11% increase in core orders and backlog, exceeding previous expectations.
Better than expected
7 March 2024 5:02 PM
Proxy Statement
- Final 2023 financial and operational results, adjusted for strategic actions, were substantially above our original financial targets for the year, driven by a combination of a better-than-expected recovery in certain end markets, consistent and strong operational execution, and substantial benefits from strategic growth investments.
Better than expected
26 February 2024 4:49 PM
Annual Results
- The company's operating profit increased significantly due to the absence of a loss on divestiture of asbestos-related assets and liabilities.
- The Aerospace & Electronics segment saw strong sales growth, driven by higher volumes and pricing.
- The company's core business sales grew by 6.9%, indicating strong underlying demand.
Better than expected
29 January 2024 4:20 PM
Quarterly Report
- The company's Q4 results exceeded expectations with a 38% increase in operating profit and a 14% increase in adjusted operating profit.
- The company's 2024 guidance indicates a 10% growth in adjusted EPS, which is a positive outlook.
- The company's record backlog in Aerospace & Electronics and strong margins in Process Flow Technologies suggest better than expected performance.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.