Carpenter Technology (NYSE:CRS) Posts Quarterly Earnings Results, Beats Estimates By $0.21 EPS

Key Points

• Carpenter Technology beat quarterly earnings expectations: EPS came in at $3.25, $0.21 above consensus, while revenue increased 8.8% year over year and EPS rose from $2.43 in the prior-year period.
• The stock fell 15.7% amid mixed analyst sentiment: Analysts maintained a consensus “Moderate Buy” rating with a $519.29 target price, though several firms recently lowered their price targets.
• The company declared a quarterly dividend of $0.20 per share: The annualized payout is $0.80, representing a 0.3% yield and a 7.6% payout ratio; insiders have sold roughly $54.6 million of shares over the past 90 days.

Carpenter Technology (NYSE:CRS - Get Free Report) issued its earnings results on Thursday. The basic materials company reported $3.25 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.04 by $0.21, Briefing.com reports. Carpenter Technology had a return on equity of 26.46% and a net margin of 16.96%. The firm's revenue was up 8.8% on a year-over-year basis. During the same period in the previous year, the business posted $2.43 EPS.

Carpenter Technology Trading Down 15.7%

Shares of Carpenter Technology stock opened at $310.27 on Thursday. The firm has a market cap of $15.38 billion, a PE ratio of 30.61, a P/E/G ratio of 1.30 and a beta of 1.29. Carpenter Technology has a 1 year low of $262.25 and a 1 year high of $625.98. The company has a debt-to-equity ratio of 0.31, a current ratio of 3.81 and a quick ratio of 2.23. The stock has a fifty day moving average price of $433.10 and a 200-day moving average price of $480.80.

Carpenter Technology Announces Dividend

The firm also recently disclosed 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. This represents a $0.80 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date is Tuesday, October 20th. Carpenter Technology's dividend payout ratio is 7.60%.

Analysts Set New Price Targets

A number of research analysts recently issued reports on CRS shares. Weiss Ratings reiterated a "buy (b)" rating on shares of Carpenter Technology in a research note on Monday, August 31st. TD Cowen lowered their price objective on Carpenter Technology from $650.00 to $500.00 and set a "buy" rating for the company in a research report on Friday, October 9th. Wells Fargo & Company reduced their target price on Carpenter Technology from $540.00 to $430.00 and set an "equal weight" rating on the stock in a report on Wednesday, September 30th. Wall Street Zen cut shares of Carpenter Technology from a "buy" rating to a "hold" rating in a research note on Saturday, October 10th. Finally, BTIG Research raised their target price on shares of Carpenter Technology from $450.00 to $620.00 and gave the company a "buy" rating in a research note on Friday, July 31st. Seven analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $519.29.

Insider Buying and Selling

In related news, Director Ramin Younessi sold 438 shares of Carpenter Technology stock in a transaction that occurred on Friday, August 21st. The shares were 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 approximately $963,121.95. The trade was a 18.32% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Steven E. Karol sold 3,275 shares of the company's stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $474.08, for a total value of $1,552,612.00. Following the completion of the transaction, the director owned 177,000 shares in the company, valued at approximately $83,912,160. The trade was a 1.82% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 112,996 shares of company stock worth $54,644,436. Insiders own 2.90% of the company's stock.

About Carpenter Technology

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.

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