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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.
Revenue by Segment
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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