Carpenter Technology
The 10-second takeaway
For the quarter ended June 30 (Q4), Carpenter Technology met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share dropped. GAAP earnings per share expanded.
Margins grew across the board.
Revenue details
Carpenter Technology booked revenue of $611.8 million. The 10 analysts polled by S&P Capital IQ expected sales of $620.8 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.76. The 12 earnings estimates compiled by S&P Capital IQ forecast $0.70 per share. Non-GAAP EPS of $0.76 for Q4 were 14% lower than the prior-year quarter's $0.88 per share. GAAP EPS of $0.77 for Q4 were 1.3% higher than the prior-year quarter's $0.76 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 19.7%, 100 basis points better than the prior-year quarter. Operating margin was 10.7%, 40 basis points better than the prior-year quarter. Net margin was 6.7%, 30 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Looking ahead
Next quarter's average estimate for revenue is $587.0 million. On the bottom line, the average EPS estimate is $0.75.
Next year's average estimate for revenue is $2.51 billion. The average EPS estimate is $3.50.
Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 383 members out of 407 rating the stock outperform, and 24 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 $60.91.
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