What to Expect from Carpenter Technology (CRS)

What to Expect from Carpenter Technology

Carpenter Technology (NYSE: CRS ) is expected to report Q1 earnings around Oct. 22. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Carpenter Technology's revenues will expand 38.5% and EPS will increase 36.4%.

The average estimate for revenue is $573.4 million. On the bottom line, the average EPS estimate is $0.75.

Revenue details
Last quarter, Carpenter Technology logged revenue of $643.7 million. GAAP reported sales were 33% higher than the prior-year quarter's $483.6 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.88. GAAP EPS of $0.76 for Q4 were 33% higher than the prior-year quarter's $0.57 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 18.7%, 280 basis points better than the prior-year quarter. Operating margin was 10.3%, 260 basis points better than the prior-year quarter. Net margin was 6.4%, 110 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $2.56 billion. The average EPS estimate is $3.48.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 390 members out of 414 rating the stock outperform, and 24 members rating it underperform. Among 128 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 125 give Carpenter Technology a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Carpenter Technology is outperform, with an average price target of $66.86.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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