Carpenter Technology Set to Release Q2 Earnings on January 29
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: seekingalpha
- Earnings Announcement: Carpenter Technology is set to announce its Q2 earnings on January 29 before market open, with consensus EPS estimate at $2.22 and revenue at $734.31 million, indicating investor interest in the company's performance outlook.
- Performance Beat Record: Over the past two years, Carpenter Technology has beaten EPS estimates 88% of the time, although it has only surpassed revenue estimates 25% of the time, reflecting a stable profitability profile despite revenue challenges.
- Estimate Revision Trends: In the last three months, EPS estimates have seen one upward revision and two downward adjustments, while revenue estimates experienced one upward and one downward revision, suggesting mixed market sentiment regarding the company's future performance.
- Debt Financing Plan: Carpenter Technology announced a proposed $700 million private offering of 5.625% senior notes due 2034, which will provide additional capital to support future growth initiatives.
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Analyst Views on CRS
Wall Street analysts forecast CRS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CRS is 389.67 USD with a low forecast of 365.00 USD and a high forecast of 425.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
6 Buy
0 Hold
0 Sell
Strong Buy
Current: 331.610
Low
365.00
Averages
389.67
High
425.00
Current: 331.610
Low
365.00
Averages
389.67
High
425.00
About CRS
Carpenter Technology Corporation is engaged in the manufacturing, fabrication and distribution of specialty metals. The Company operates in two segments: Specialty Alloys Operations (SAO) and Performance Engineered Products (PEP). The SAO segment comprises its premium alloy and stainless-steel manufacturing operations. This includes operations performed at mills primarily in Reading and Latrobe, Pennsylvania and surrounding areas, as well as South Carolina and Alabama. The PEP segment comprises its differentiated operations. This segment includes the Dynamet titanium business, the Carpenter Additive business and the Latrobe and Mexico distribution businesses. It provides specialty alloy-based materials and process solutions for critical applications in the aerospace, defense, medical, transportation, energy, industrial and consumer markets. The Company operates its own network of service and distribution centers, located in the United States, Canada, Mexico, Europe and Asia.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Carpenter Technology Reports Record Q2 Earnings Driven by Aerospace Demand
- Record Quarterly Earnings: Carpenter Technology reported a record operating income of $155 million for Q2, a 31% year-over-year increase, with SAO segment operating income reaching a record $174.6 million, highlighting significant profitability growth amid strong aerospace and defense demand.
- Strong Market Demand: Aerospace and defense bookings increased by 8% sequentially, with commercial aerospace bookings up 23%, indicating sustained demand in key markets that is expected to further drive revenue growth in the future.
- Cash Flow and Share Buybacks: The company generated $132.2 million in operating cash flow and $85.9 million in adjusted free cash flow, repurchasing $32.1 million in stock during the quarter, which enhanced liquidity to $730.8 million, providing ample funding for future investments.
- Upgraded Full-Year Guidance: Carpenter raised its fiscal 2026 operating income outlook to $680 million to $700 million, reflecting an optimistic view on future market demand, particularly in the aerospace sector, which is expected to continue its growth trajectory.
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Carpenter Technology Reports Q2 2026 Earnings Results
- Earnings Beat: Carpenter Technology's Q2 non-GAAP EPS of $2.33 exceeded expectations by $0.11, indicating sustained profitability despite revenue falling short of forecasts.
- Revenue Growth: The company reported Q2 revenue of $728 million, a 7.5% year-over-year increase, yet missed market expectations by $6.31 million, highlighting challenges from intensified market competition and demand fluctuations.
- Guidance Upgrade: Carpenter raised its fiscal year 2026 operating income guidance to between $680 million and $700 million, representing a 30% to 33% increase over fiscal year 2025, reflecting confidence in future performance and a positive market outlook.
- Cash Flow Outlook Improvement: The adjusted free cash flow forecast is now at least $280 million, indicating enhanced capital management and cash generation capabilities, which will support future investments and shareholder returns.
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