The 10-second takeaway
For the quarter ended March 31 (Q3), Carpenter Technology beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share improved.
Gross margins increased, operating margins improved, net margins contracted.
Carpenter Technology chalked up revenue of $539.9 million. The five analysts polled by S&P Capital IQ predicted revenue of $499.7 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $464.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.84. The eight earnings estimates compiled by S&P Capital IQ anticipated $0.68 per share on the same basis. GAAP EPS of $0.69 for Q3 were 7.8% higher than the prior-year quarter's $0.64 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 19.5%, 380 basis points better than the prior-year quarter. Operating margin was 11.8%, 420 basis points better than the prior-year quarter. Net margin was 6.1%, 10 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $566.2 million. On the bottom line, the average EPS estimate is $0.75.
Next year's average estimate for revenue is $1.91 billion. The average EPS estimate is $2.53.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 385 members out of 409 rating the stock outperform, and 24 members rating it underperform. Among 148 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 145 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 $66.57.
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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. 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.