The 10-second takeaway
For the quarter ended June 30 (Q4), Carpenter Technology beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded significantly.
Margins increased across the board.
Carpenter Technology reported revenue of $643.7 million. The six analysts polled by S&P Capital IQ foresaw sales of $618.1 million on the same basis. 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 came in at $0.88. The eight earnings estimates compiled by S&P Capital IQ predicted $0.80 per share. 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.
For the quarter, gross margin was 18.7%, 280 basis points better than the prior-year quarter. Operating margin was 10.3%, 240 basis points better than the prior-year quarter. Net margin was 6.4%, 110 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $574.0 million. On the bottom line, the average EPS estimate is $0.74.
Next year's average estimate for revenue is $2.54 billion. The average EPS estimate is $3.44.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 389 members out of 413 rating the stock outperform, and 24 members rating it underperform. Among 127 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 122 give Carpenter Technology a green thumbs-up, and five 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.
Looking for alternatives to Carpenter Technology? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add Carpenter Technology to My Watchlist.
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.