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Mar 31, 2024
Crane NXT Q1 2024 Earnings Report
Crane NXT reported first quarter 2024 financial results, including a decrease in net sales and operating profit, but completed the acquisition of OpSec Security and increased its full-year sales guidance.
Key Takeaways
Crane NXT reported first quarter 2024 net sales of $313.6 million, a decrease of 4.7% year-over-year, with GAAP EPS of $0.66 and Adjusted EPS of $0.85. The company completed the acquisition of OpSec Security and increased its full-year 2024 sales guidance to 5% to 8%. Operating profit was $55.4 million, down from $65.9 million in the prior year.
Crane NXT completed the acquisition of OpSec Security on May 3, 2024, for $270 million in cash, strengthening its brand protection and authentication solutions portfolio.
First quarter core sales declined 4.2% year-over-year, resulting in GAAP EPS of $0.66 and Adjusted EPS of $0.85, which was in line with the company's expectations.
The company increased its full-year 2024 sales guidance to 5% to 8% due to the OpSec acquisition, while reaffirming its Adjusted EPS guidance for the full year.
Operating profit for Q1 2024 was $55.4 million, a decrease from $65.9 million in Q1 2023, primarily due to lower sales at Crane Payment Innovations and acquisition-related expenses, partially offset by favorable pricing and productivity.
Crane NXT
Crane NXT
Crane NXT Revenue by Segment
Revenue by Segment
Crane Payment Innovations Revenue
CapyFin.com Forward Guidance
Crane NXT updated its full-year 2024 guidance to include the acquisition of OpSec Security, increasing sales growth expectations while maintaining Adjusted EPS guidance.
Positive Outlook
- Crane NXT Sales Growth guidance increased to 5% to 8% (from -1% to +3%) due to the OpSec acquisition.
- Adjusted EPS guidance remains consistent at $4.10 to $4.35.
- Corporate Expense guidance remains consistent at approximately $53 million.
- Adjusted Tax Rate guidance remains consistent at approximately 21%.
- Adjusted Free Cash Flow Conversion guidance remains consistent at approximately 100%.
Challenges Ahead
- Adjusted Segment Operating Margin guidance decreased to 26% to 28% (from 27% to 29%).
- Non-Operating Expense, Net guidance increased to approximately $47 million (from approximately $37 million).
- No specific negative changes were highlighted for Diluted Shares, which remain at approximately 57.6 million.
- The core sales growth guidance for CPI and Crane Currency segments remains unchanged, indicating no improvement in underlying organic growth expectations.
- The decrease in Adjusted Segment Operating Margin suggests potential margin pressure despite the acquisition.