The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Carpenter Technology met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.
Gross margins dropped, operating margins dropped, net margins grew.
Carpenter Technology chalked up revenue of $533.5 million. The seven analysts polled by S&P Capital IQ expected to see revenue of $534.0 million on the same basis. GAAP reported sales were 24% higher than the prior-year quarter's $431.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.62. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.61 per share. GAAP EPS of $0.62 for Q2 were 19% higher than the prior-year quarter's $0.52 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 19.2%, 40 basis points worse than the prior-year quarter. Operating margin was 9.9%, 80 basis points worse than the prior-year quarter. Net margin was 6.2%, 70 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $631.4 million. On the bottom line, the average EPS estimate is $0.83.
Next year's average estimate for revenue is $2.40 billion. The average EPS estimate is $3.14.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 387 members out of 411 rating the stock outperform, and 24 members rating it underperform. Among 140 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 136 give Carpenter Technology a green thumbs-up, and four 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 $66.91.
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