Carpenter Technology (NYSE:CRS) Issues Earnings Results

Carpenter Technology (NYSE:CRS) issued its quarterly earnings results on Thursday. The basic materials company reported $3.25 earnings per share for the quarter, beating the consensus estimate of $3.04 by $0.21, Briefing.com reports. The business had revenue of $634.80 million for the quarter, compared to the consensus estimate of $830.85 million. Carpenter Technology had a net margin of 16.96% and a return on equity of 26.46%. The company’s revenue for the quarter was up 8.8% on a year-over-year basis. During the same quarter in the previous year, the firm earned $2.43 earnings per share.

Here are the key takeaways from Carpenter Technology’s conference call:

• Record first-quarter operating income rose 28% year over year to $196.4 million, while SAO adjusted operating margin held at a record 37.7% despite planned maintenance outages and fewer operating days.
• Commercial aerospace demand continues to strengthen, with bookings up 25% year over year and distribution/structural bookings up 49%; engine bookings increased 22% year over year. Management said customer backlogs are growing and expects demand to accelerate as Airbus and Boeing raise production.
• Pricing remains a significant tailwind as nickel superalloy supply remains constrained. Management said recently renewed and prospective aerospace long-term agreements carry higher pricing, with potential upside from volume, productivity, and pricing versus prior fiscal 2027 assumptions.
• The company maintained its fiscal 2027 free-cash-flow outlook of $400 million-$430 million and expects its brownfield capacity expansion to be completed by the start of fiscal 2028. Carpenter also repurchased $133.9 million of stock during the quarter and said it will remain active in buybacks at current valuation levels.
• Defense bookings declined sequentially and year over year because of funding delays, while PEP operating income fell to $7.3 million from $9.4 million a year earlier. Management expects a significant defense order surge once budget clarity improves and PEP results to remain roughly flat in the second quarter.

Carpenter Technology Price Performance

Shares of CRS traded down $8.14 during midday trading on Friday, hitting $284.12. 165,544 shares of the company traded hands, compared to its average volume of 769,519. The stock has a market cap of $14.08 billion, a price-to-earnings ratio of 27.17, a PEG ratio of 1.29 and a beta of 1.29. The firm has a 50 day moving average of $428.25 and a 200-day moving average of $480.10. The company has a debt-to-equity ratio of 0.31, a quick ratio of 2.23 and a current ratio of 3.81. Carpenter Technology has a 52 week low of $278.17 and a 52 week high of $625.98.

Carpenter Technology Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 3rd. Shareholders of record on Tuesday, October 20th will be paid a $0.20 dividend. The ex-dividend date is Tuesday, October 20th. This represents a $0.80 annualized dividend and a yield of 0.3%. Carpenter Technology’s payout ratio is presently 7.60%.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on CRS. Wall Street Zen cut shares of Carpenter Technology from a “buy” rating to a “hold” rating in a research note on Saturday, October 10th. TD Cowen dropped their target price on shares of Carpenter Technology from $650.00 to $500.00 and set a “buy” rating for the company in a report on Friday, October 9th. KeyCorp cut their price target on Carpenter Technology from $608.00 to $465.00 and set an “overweight” rating for the company in a research note on Thursday, October 8th. Zacks Research lowered Carpenter Technology from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, September 15th. Finally, Wells Fargo & Company lowered their price objective on Carpenter Technology from $540.00 to $430.00 and set an “equal weight” rating on the stock in a research report on Wednesday, September 30th. Seven investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, Carpenter Technology has an average rating of “Moderate Buy” and an average target price of $476.43.

Trending Headlines about Carpenter Technology

Here are the key news stories impacting Carpenter Technology this week:

• Positive Sentiment: Carpenter reported record fiscal first-quarter operating income, up 28% year over year, supported by productivity improvements, favorable product mix and pricing actions. The Specialty Alloys Operations segment posted a 37.7% adjusted operating margin, while commercial aerospace bookings accelerated. Carpenter Technology fiscal 2027 first-quarter results
• Positive Sentiment: Adjusted earnings reached $3.25 per share, exceeding analyst expectations of roughly $2.97 to $3.04 and rising from $2.43 a year earlier. Revenue increased 8.8% year over year, and management maintained its fiscal 2027 free-cash-flow outlook of $400 million to $430 million. Carpenter Technology earnings results
• Positive Sentiment: Carpenter outlined a fiscal 2029 operating-income target of $1.2 billion to $1.3 billion, offering a longer-term growth catalyst if aerospace demand and operational improvements continue. Carpenter fiscal 2029 operating-income target
• Neutral Sentiment: The company named Jed Freeman as its next general counsel. The leadership change is unlikely to materially affect near-term earnings expectations. Carpenter Technology names next general counsel
• Negative Sentiment: Revenue of $634.8 million fell well short of the approximately $830.9 million consensus estimate. Investors appear to be treating the sales miss and valuation concerns as more significant than the EPS beat. Why Carpenter Technology stock fell after earnings
• Negative Sentiment: Deutsche Bank reduced its price target from $555 to $361, while BTIG lowered its target from $620 to $470. Both firms retained Buy ratings, but the reductions signal lower near-term expectations and add pressure to CRS shares. Deutsche Bank Carpenter Technology price target

Insider Buying and Selling at Carpenter Technology

In other Carpenter Technology news, Director Ramin Younessi sold 438 shares of Carpenter Technology stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $493.15, for a total value of $215,999.70. Following the sale, the director owned 1,953 shares of the company’s stock, valued at $963,121.95. The trade was a 18.32% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director Steven Karol sold 3,275 shares of the stock in a transaction on Friday, September 4th. The shares were sold at an average price of $474.08, for a total transaction of $1,552,612.00. Following the transaction, the director owned 177,000 shares of the company’s stock, valued at $83,912,160. This trade represents a 1.82% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 112,996 shares of company stock worth $54,644,436 in the last quarter. 2.90% of the stock is owned by corporate insiders.

Carpenter Technology Company Profile

Carpenter Technology Corporation is a manufacturer of premium specialty metals and engineered materials for demanding applications. The company produces stainless steels, nickel- and cobalt-based alloys, titanium, powder metals, and other high-performance materials designed to withstand extreme temperatures, corrosion, stress, and wear.

Its products are used in aerospace and defense, medical devices, energy, transportation, industrial equipment, and other specialized markets. Carpenter Technology supplies materials in forms such as bar, wire, strip, sheet, and powder, and also provides processing and engineered component solutions through its performance-engineered products operations.

Founded in 1889 as Carpenter Steel Company, the company has developed a global customer base supported by manufacturing, research, and service operations in the United States and international markets.