The 10-second takeaway
For the quarter ended March 31 (Q3), Carpenter Technology missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share contracted significantly. GAAP earnings per share dropped.
Margins contracted across the board.
Carpenter Technology logged revenue of $581.4 million. The seven analysts polled by S&P Capital IQ expected net sales of $606.7 million on the same basis. GAAP reported sales were 7.7% higher than the prior-year quarter's $539.9 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 $0.69. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.74 per share. Non-GAAP EPS of $0.69 for Q3 were 18% lower than the prior-year quarter's $0.84 per share. GAAP EPS of $0.62 for Q3 were 10% lower than the prior-year quarter's $0.69 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 17.4%, 210 basis points worse than the prior-year quarter. Operating margin was 9.1%, 270 basis points worse than the prior-year quarter. Net margin was 5.7%, 40 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $644.2 million. On the bottom line, the average EPS estimate is $0.83.
Next year's average estimate for revenue is $2.35 billion. The average EPS estimate is $2.96.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 381 members out of 406 rating the stock outperform, and 25 members rating it underperform. Among 121 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 118 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 $64.36.
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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 position in any of the stocks mentioned. 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.