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Sep 30, 2023
Crane Q3 2023 Earnings Report
Reported strong Q3 2023 results, driven by core sales growth and margin improvement.
Key Takeaways
Crane Company reported a strong third quarter in 2023, with a 10% increase in sales and a 42% increase in adjusted operating profit. The company is raising and narrowing its adjusted EPS guidance for the full year to $4.05-$4.20.
Earnings from continuing operations per diluted share (EPS) of $0.96 and adjusted EPS of $1.03.
Core year-over-year sales growth of 9% and core year-over-year backlog growth of 7%.
Year-over-year growth in operating profit from continuing operations of 165%, and year-over-year growth in adjusted operating profit from continuing operations of 42%.
Announced acquisition of Baum lined piping GmbH for approximately $91 million as a strategic bolt-on for the Chemical business within the Process Flow Technologies segment.
Crane
Crane
Crane Revenue by Segment
Revenue by Segment
Process Flow Tech Revenue
CapyFin.com Forward Guidance
Crane is raising and narrowing its adjusted EPS guidance to a range of $4.05 to $4.20.
Positive Outlook
- Total sales growth of approximately 7.5% driven by core sales growth of approximately 6% to 8%.
- Acquisition benefit of approximately 0.5%.
- Adjusted operating margin of ~15.5%.
- Adjusted tax rate of ~23% (unchanged).
- Diluted shares of ~57.5 million.
Challenges Ahead
- Corporate cost of ~$72 million.
- Net non-operating expense of ~$16 million.