Carpenter Technology Beats Up on Analysts Yet Again

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Carpenter Technology (NYS: CRS) reported earnings on Jan. 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Carpenter Technology missed on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded and earnings per share improved significantly.

Margins increased across the board.

Revenue details
Carpenter Technology chalked up revenue of $431.1 million. The four analysts polled by S&P Capital IQ expected revenue of $444.9 million. Sales were 15% higher than the prior-year quarter's $375.6 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.57. The six earnings estimates compiled by S&P Capital IQ predicted $0.55 per share on the same basis. GAAP EPS of $0.52 for Q2 were 148% higher than the prior-year quarter's $0.21 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 19.6%, 650 basis points better than the prior-year quarter. Operating margin was 10.7%, 750 basis points better than the prior-year quarter. Net margin was 5.5%, 300 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $509.4 million. On the bottom line, the average EPS estimate is $0.72.

Next year's average estimate for revenue is $1.96 billion. The average EPS estimate is $2.57.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 388 members out of 414 rating the stock outperform, and 26 members rating it underperform. Among 162 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 159 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 $62.71.

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At the time this article was published 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 ofMotley 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.

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