Carpenter Technology Crushes Earnings Estimates

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Carpenter Technology (NYS: CRS) reported earnings on April 25. Here are the numbers you need to know.

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.

Revenue details
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.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
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.

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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 19.5%, 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.

Looking ahead
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.

Investor sentiment
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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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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