Carpenter Technology (NYSE:CRS) Releases Quarterly Earnings Results, Beats Estimates By $0.30 EPS

Key Points

• Carpenter Technology reported earnings of $2.43 per share, surpassing analysts' expectations by $0.30 and demonstrating a 2.2% increase in revenue compared to the same quarter last year.
• The company's stock surged by 20.0% following the earnings announcement, with shares trading at $293.84.
• Carpenter Technology declared a quarterly dividend of $0.20, reflecting an annualized yield of 0.3%, with the ex-dividend date set for October 21st.

Carpenter Technology (NYSE:CRS - Get Free Report) released its quarterly earnings results on Thursday. The basic materials company reported $2.43 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.13 by $0.30, Zacks reports. Carpenter Technology had a net margin of 13.07% and a return on equity of 21.50%. Carpenter Technology's revenue was up 2.2% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.73 earnings per share.

Carpenter Technology Stock Up 20.0%

NYSE:CRS traded up $49.05 during trading hours on Thursday, reaching $293.84. The company had a trading volume of 1,229,584 shares, compared to its average volume of 906,531. The company has a quick ratio of 2.01, a current ratio of 3.65 and a debt-to-equity ratio of 0.37. The firm has a market cap of $14.65 billion, a price-to-earnings ratio of 39.42, a P/E/G ratio of 1.13 and a beta of 1.46. The business's 50-day simple moving average is $243.65 and its two-hundred day simple moving average is $238.83. Carpenter Technology has a twelve month low of $138.61 and a twelve month high of $294.46.

Carpenter Technology Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 4th. Shareholders of record on Tuesday, October 21st will be issued a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date is Tuesday, October 21st. Carpenter Technology's dividend payout ratio (DPR) is presently 10.78%.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the stock. Weiss Ratings reaffirmed a "buy (b+)" rating on shares of Carpenter Technology in a research note on Wednesday, October 8th. BTIG Research restated a "buy" rating on shares of Carpenter Technology in a report on Monday, August 4th. Jones Trading initiated coverage on shares of Carpenter Technology in a report on Wednesday. They issued a "buy" rating and a $400.00 target price on the stock. Finally, Zacks Research lowered shares of Carpenter Technology from a "strong-buy" rating to a "hold" rating in a report on Wednesday, October 1st. Six equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $308.75.

Insiders Place Their Bets

In other news, Director I Martin Inglis sold 5,691 shares of Carpenter Technology stock in a transaction dated Monday, August 18th. The shares were sold at an average price of $244.54, for a total transaction of $1,391,677.14. Following the completion of the transaction, the director directly owned 6,732 shares in the company, valued at $1,646,243.28. This trade represents a 45.81% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Tony R. Thene sold 19,000 shares of Carpenter Technology stock in a transaction dated Monday, August 18th. The shares were sold at an average price of $244.99, for a total transaction of $4,654,810.00. Following the transaction, the chief executive officer owned 535,019 shares of the company's stock, valued at $131,074,304.81. This represents a 3.43% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 28,124 shares of company stock worth $6,890,250. 2.90% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Geneos Wealth Management Inc. acquired a new position in shares of Carpenter Technology during the second quarter valued at about $28,000. Headlands Technologies LLC acquired a new position in shares of Carpenter Technology during the second quarter valued at about $43,000. Rakuten Securities Inc. acquired a new position in shares of Carpenter Technology during the second quarter valued at about $45,000. NewEdge Advisors LLC grew its holdings in shares of Carpenter Technology by 2,061.5% during the second quarter. NewEdge Advisors LLC now owns 281 shares of the basic materials company's stock valued at $78,000 after buying an additional 268 shares during the last quarter. Finally, Quantbot Technologies LP acquired a new position in shares of Carpenter Technology during the second quarter valued at about $80,000. 92.03% of the stock is currently owned by institutional investors and hedge funds.

Carpenter Technology Company Profile

Carpenter Technology Corporation engages in the manufacture, fabrication, and distribution of specialty metals in the United States, Europe, the Asia Pacific, Mexico, Canada, and internationally. It operates in two segments, Specialty Alloys Operations and Performance Engineered Products. The company offers specialty alloys, including titanium alloys, powder metals, stainless steels, alloy steels, and tool steels, as well as additives, and metal powders and parts.

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