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Category: Stock Market and Crane Co (CR)
Date: 28 July 2020 Stock Price of Crane Co: $61.41 We take a look at the 2nd quarter earnings report of their 2020 fiscal year of Crane Co a diversified manufacturer of highly engineered industrial products whose revenues declined by -19.5% for the quarter compared to the same quarter of the previous year.
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While uncertainty was, and is, extremely high, we did our best to provide meaningful guidance when we released last quarter's results. Our teams executed extremely well in a challenging environment, and second quarter results modestly exceeded our expectations largely due to certain timing related items - Max Mitchell, Crane Co. President and Chief Executive Officer "
About Crane Co (CR)
Crane Co. is a diversified manufacturer of highly engineered industrial products. Founded in 1855, Crane Co. provides products and solutions to customers in the chemicals, oil & gas, power, automated payment solutions, banknote design and production and aerospace & defense markets, along with a wide range of general industrial and consumer related end markets. The Company has four business segments: Fluid Handling, Payment & Merchandising Technologies, Aerospace & Electronics and Engineered Materials. Crane Co. has approximately 11,000 employees in the Americas, Europe, the Middle East, Asia and Australia. Crane Co. is traded on the New York Stock Exchange (NYSE: CR).
Overview of Crane Co's 2nd quarter 2020 earnings report
Data below refers to quarterly data unless specified otherwise:
- Revenues: $677.9 million (down from $841.6 million for the same period of the previous year)
- Revenues decreased by -19.5% over the last 12 months
- Total costs and expenses: $452.1 million (down from $535 million for the same period of the previous year)
- Total costs and expenses decrease by -15.5% over the last 12 months
- Net income: $14.8 million (down from $91 million from for the same period of the previous year)
- Diluted earnings per share: $0.25 (down from $1.50 for the same period of the previous year)
- Diluted weighted-average shares outstanding: 58.5 million (down from 60.8 million for the same period of the previous year)
- Cash and cash equivalents: $592.1 million
- Cash and cash equivalents per share: $10.21
- Cash and cash equivalents makes up 16.6% of Crane Co's market capital
- Cash and cash equivalents makes up 12.8% of Crane Co's total assets
- Stockholders equity in Crane Co: $1.423 billion
- Stockholders equity per share in Crane Co': $24.32
- So Crane Co is trading at 2.52 times its stockholders equity per share which is within the expected range of between 2 and 4 most firms tend to trade at
Crane Co management commentary on their 2nd quarter 2020 results
STAMFORD, Conn.--(BUSINESS WIRE)-- Crane Co. (NYSE: CR), a diversified manufacturer of highly engineered industrial products, reported second quarter 2020 GAAP earnings per diluted share (EPS) of $0.25, compared to $1.50 in the second quarter of 2019. Excluding Special Items, second quarter 2020 EPS was $0.64, compared to $1.58 in the second quarter of 2019. (Please see the attached Non-GAAP Financial Measures tables for a detailed reconciliation of reported results to adjusted measures.)
Highlights from Second Quarter 2020 Results:
Highlights from Second Quarter 2020 Results:
- GAAP earnings per diluted share (EPS) of $0.25 compared to $1.50 in the second quarter of 2019.
- Excluding Special Items, EPS of $0.64 compared to $1.58 in the second quarter of 2019.
- Narrowing 2020 GAAP EPS guidance range to $2.65-$3.45 from the prior range of $2.35-$3.60.
- Excluding Special Items, narrowing 2020 EPS guidance range to $3.30-$4.10 from the prior range of $3.00-$4.25.
- Reiterating 2020 free cash flow guidance range of $200-$250 million (cash provided by operating activities less capital spending).
Max Mitchell, Crane Co. President and Chief Executive Officer stated: “While uncertainty was, and is, extremely high, we did our best to provide meaningful guidance when we released last quarter's results. Our teams executed extremely well in a challenging environment, and second quarter results modestly exceeded our expectations largely due to certain timing related items. We have narrowed our guidance range to reflect that we are now more than halfway through the year, and incorporating our best thinking on the impact of pandemic-related government mandated openings and closings, business restrictions, and demand challenges. I remain highly confident in the strength and resilience of Crane's portfolio and in our long-term outlook as end markets continue to recover."
Updating Full Year Outlook
The company’s current and best estimate of full-year 2020 GAAP EPS is now $2.65-$3.45, compared to the prior range of $2.35-$3.60. Excluding Special Items, the company's current and best estimate of full-year 2020 EPS is now $3.30-$4.10, compared to the prior range of $3.00-$4.25. We now expect a full-year 2020 core sales decline of approximately 17% to 21%, and we continue to expect full-year 2020 free cash flow (cash provided by operating activities less capital spending) in a range of $200-$250 million. (Please see the attached non-GAAP Financial Measures tables.)
We note that uncertainty regarding the potential impact of the COVID-19 pandemic on demand and operations continues to pose unique and substantial challenges for normal forecasting methodologies, making it difficult to accurately project future financial results.
Updating Full Year Outlook
The company’s current and best estimate of full-year 2020 GAAP EPS is now $2.65-$3.45, compared to the prior range of $2.35-$3.60. Excluding Special Items, the company's current and best estimate of full-year 2020 EPS is now $3.30-$4.10, compared to the prior range of $3.00-$4.25. We now expect a full-year 2020 core sales decline of approximately 17% to 21%, and we continue to expect full-year 2020 free cash flow (cash provided by operating activities less capital spending) in a range of $200-$250 million. (Please see the attached non-GAAP Financial Measures tables.)
We note that uncertainty regarding the potential impact of the COVID-19 pandemic on demand and operations continues to pose unique and substantial challenges for normal forecasting methodologies, making it difficult to accurately project future financial results.
Crane Co (CR) stock price history
The image below, obtained from Google, shows the stock price history of BJ's Restaurants over the last 5 years. And it's been a decent time for Crane Co stockholders. 5 years ago the stock was trading at around $53 a stock and its currently trading at $61.41 a stock. That's a decent return of 15.8% provided to Crane Co stockholders over the last 5 years.
The stock of Crane Co is trading at close to the midpoint between its 52 week low and 52 week high which to us is an indication that the short term sentiment and momentum of Crane Co is neutral at this point in time.
The stock of Crane Co is trading at close to the midpoint between its 52 week low and 52 week high which to us is an indication that the short term sentiment and momentum of Crane Co is neutral at this point in time.
Crane Co (CR) stock vs Honeywell (HON) stock over the last 5 years
The image below shows the stock price history of Crane Co (CR) and Honeywell (HON) over the last 5 years. Below a summary of the stock price returns provided by these two manufacturing firms over the last 5 years.
- Honeywell (HON) 58.23%
- Crane Co (CR): 22.4%
Recent coverage of Crane Co (CR)
The extract below discusses the latest news regarding Crane (CR) as obtained from Nasdaq.com
RTTNews) - Crane Co. (CR) reported second quarter adjusted earnings per share of $0.64, compared to $1.58, prior year. On average, six analysts polled by Thomson Reuters expected the company to report profit per share of $0.47, for the quarter. Analysts' estimates typically exclude special items. Excluding special items, operating profit was $61 million compared to $132 million, last year.
Second quarter sales were $678 million, a decline of 20% from prior year. Analysts expected revenue of $626.09 million for the quarter. The sales decline included a decline of 24% in core sales. Second quarter free cash flow was $106 million compared to $137 million in the second quarter of 2019.
For fiscal 2020, Crane Co. now projects adjusted earnings per share in a range of $3.30-$4.10, compared to the prior range of $3.00-$4.25. The company now expects a core sales decline of approximately 17% to 21%. Crane Co. continues to expect 2020 free cash flow in a range of $200-$250 million.
Max Mitchell, Crane Co. CEO said: "Second quarter results modestly exceeded our expectations largely due to certain timing related items. We have narrowed our guidance range to reflect that we are now more than halfway through the year, and incorporating our best thinking on the impact of pandemic-related government mandated openings and closings, business restrictions, and demand challenges."
Read the full article here
RTTNews) - Crane Co. (CR) reported second quarter adjusted earnings per share of $0.64, compared to $1.58, prior year. On average, six analysts polled by Thomson Reuters expected the company to report profit per share of $0.47, for the quarter. Analysts' estimates typically exclude special items. Excluding special items, operating profit was $61 million compared to $132 million, last year.
Second quarter sales were $678 million, a decline of 20% from prior year. Analysts expected revenue of $626.09 million for the quarter. The sales decline included a decline of 24% in core sales. Second quarter free cash flow was $106 million compared to $137 million in the second quarter of 2019.
For fiscal 2020, Crane Co. now projects adjusted earnings per share in a range of $3.30-$4.10, compared to the prior range of $3.00-$4.25. The company now expects a core sales decline of approximately 17% to 21%. Crane Co. continues to expect 2020 free cash flow in a range of $200-$250 million.
Max Mitchell, Crane Co. CEO said: "Second quarter results modestly exceeded our expectations largely due to certain timing related items. We have narrowed our guidance range to reflect that we are now more than halfway through the year, and incorporating our best thinking on the impact of pandemic-related government mandated openings and closings, business restrictions, and demand challenges."
Read the full article here
Crane Co (CR) latest stock valuation
So what is BJ's Restaurants stock worth based on the release of their latest earnings report? Based on the earnings report provided by BJ's Restaurants our our valuation models provide a target (full value) price for BJ's Restaurants stock at $29.80 a stock. We therefore believe that the stock of BJ's Restaurants is undervalued.
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $29.80. Therefore we believe a good entry point into BJ's Restaurants stock is at $26.80 or below. We expect the stock price of BJ's Restaurants to kick up from current levels to levels closer to our target price price (full value price) in coming weeks and months.
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $29.80. Therefore we believe a good entry point into BJ's Restaurants stock is at $26.80 or below. We expect the stock price of BJ's Restaurants to kick up from current levels to levels closer to our target price price (full value price) in coming weeks and months.
Next earnings release date for Crane Co
It is expected that Crane Co (CR) will release their 3rd quarter 2020 earnings report towards the end of October 2020.