STAMFORD, Conn. - Crane Co. (NYSE:CR), a diversified manufacturer of highly engineered industrial products, reported first-quarter earnings that surpassed analyst expectations, buoyed by robust sales growth and strategic acquisitions. The company's adjusted earnings per share (EPS) for the first quarter of 2024 came in at $1.22, edging past the analyst estimate of $1.19. Revenue for the quarter reached $565 million, significantly exceeding the consensus estimate of $540.49 million.
The company's strong performance is reflected in a 5% core sales growth year-over-year (YoY), along with an 11% increase in core orders and backlog. This growth has instilled confidence in Crane's management, leading to an upward revision of the full-year adjusted EPS guidance to a range of $4.75-$5.05, from the prior range of $4.55-$4.85. The revised guidance comfortably surpasses the analyst consensus of $4.81, signaling a positive outlook for the company's future earnings.
Crane's stock responded positively to the news, rising 1.7%, indicating investor optimism following the revenue beat and improved guidance. This uptick, although below the 2% threshold for a significant market movement, still suggests a favorable market response.
Max Mitchell, Crane's Chairman, President, and Chief Executive Officer, commented on the results, "Crane is off to a great start in 2024, with strong results reflecting continued differentiated execution and accelerating results from growth initiatives." He also highlighted the strategic acquisition of CryoWorks, Inc., which is expected to bolster Crane's growing Hydrogen business within the Process Flow Technologies segment.
The company's Aerospace & Electronics segment saw a notable 25% increase in sales, driven by a 20% core sales growth and a 5% benefit from the Vian acquisition. The segment's operating profit margin improved, reflecting higher volumes, productivity, and a favorable mix. Process Flow Technologies also experienced a sales increase, albeit with a slight decline in core sales, while the Engineered Materials segment faced a 12% decline in sales.
Looking ahead, Crane's revised full-year guidance is based on key assumptions, including a total sales growth of approximately 10%, driven by core sales growth and acquisitions, and an adjusted segment operating margin of around 20.5%.
In summary, Crane Co. has delivered a robust start to 2024, with first-quarter earnings and revenue that not only beat analyst estimates but also demonstrated the company's strong operational execution and strategic growth initiatives. The upward revision of the full-year EPS guidance further underscores the company's confidence in its financial trajectory and its ability to create shareholder value.
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