Carpenter Technology (NYSE:CRS) Posts Quarterly Earnings Results, Beats Estimates By $0.17 EPS

Carpenter Technology (NYSE:CRS) released its quarterly earnings data on Wednesday. The basic materials company reported $2.77 earnings per share for the quarter, beating the consensus estimate of $2.60 by $0.17, Briefing.com reports. Carpenter Technology had a net margin of 14.77% and a return on equity of 23.63%. During the same quarter in the previous year, the business earned $1.88 earnings per share. Carpenter Technology’s quarterly revenue was up 11.6% compared to the same quarter last year.

Here are the key takeaways from Carpenter Technology’s conference call:

• Carpenter reported a record quarterly operating income of $186.5M and generated $193.5M cash from operations ($124.8M adjusted FCF in the quarter), raising FY26 adjusted free cash flow guidance to at least $350M while continuing share repurchases and the dividend.
• The Specialty Alloys Operations (SAO) segment hit a record 35.6% adjusted operating margin
• Demand is accelerating in key end markets — notably aerospace & defense (structural bookings increased significantly) and industrial gas turbines (energy) — with more urgent/expedite requests as OEM inventories draw down, supporting near?term volume upside.
• The PEP segment and medical end?use were weak: medical sales fell 29% YoY (PEP operating income modest at $6.7M), with certain titanium medical products still soft despite improved bookings pointing to a potential gradual recovery.
• The Brownfield capacity expansion remains on budget and on schedule, but timing of cash payments shifted ~ $40M of FY26 CapEx into next year (FY26 CapEx now expected ~ $260M); management will update FY27 guidance next quarter.

Carpenter Technology Price Performance

NYSE:CRS traded down $25.76 during trading hours on Wednesday, hitting $402.38. 1,192,918 shares of the stock traded hands, compared to its average volume of 803,265. The company has a quick ratio of 2.26, a current ratio of 4.25 and a debt-to-equity ratio of 0.35. Carpenter Technology has a 1 year low of $188.12 and a 1 year high of $459.18. The company has a market cap of $20.04 billion, a price-to-earnings ratio of 46.90, a price-to-earnings-growth ratio of 1.65 and a beta of 1.24. The stock has a 50 day moving average price of $402.82 and a 200 day moving average price of $349.37.

Carpenter Technology Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, June 4th. Shareholders of record on Tuesday, April 28th will be issued a dividend of $0.20 per share. The ex-dividend date of this dividend is Tuesday, April 28th. This represents a $0.80 annualized dividend and a yield of 0.2%. Carpenter Technology’s payout ratio is currently 9.29%.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on CRS. Susquehanna began coverage on shares of Carpenter Technology in a report on Tuesday, March 3rd. They issued a “positive” rating and a $470.00 price objective on the stock. KeyCorp raised their price objective on shares of Carpenter Technology from $380.00 to $453.00 and gave the stock an “overweight” rating in a report on Thursday, April 9th. Wall Street Zen raised shares of Carpenter Technology from a “hold” rating to a “buy” rating in a report on Saturday, January 31st. Weiss Ratings reissued a “buy (b)” rating on shares of Carpenter Technology in a report on Friday. Finally, JPMorgan Chase & Co. raised their price objective on shares of Carpenter Technology from $394.00 to $465.00 and gave the stock an “overweight” rating in a report on Monday, April 20th. Nine research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, Carpenter Technology currently has an average rating of “Moderate Buy” and an average price target of $403.11.

Insider Activity at Carpenter Technology

In other Carpenter Technology news, Director Steven E. Karol sold 3,500 shares of Carpenter Technology stock in a transaction that occurred on Thursday, February 19th. The shares were sold at an average price of $381.12, for a total transaction of $1,333,920.00. Following the transaction, the director owned 225,381 shares of the company’s stock, valued at $85,897,206.72. The trade was a 1.53% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP James D. Dee sold 15,800 shares of Carpenter Technology stock in a transaction that occurred on Tuesday, February 24th. The shares were sold at an average price of $391.78, for a total transaction of $6,190,124.00. Following the transaction, the senior vice president directly owned 73,739 shares in the company, valued at $28,889,465.42. This represents a 17.65% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 22,300 shares of company stock worth $8,664,044 in the last ninety days. Insiders own 2.90% of the company’s stock.

Hedge Funds Weigh In On Carpenter Technology

Several hedge funds have recently modified their holdings of the stock. Invesco Ltd. lifted its holdings in shares of Carpenter Technology by 18.8% in the fourth quarter. Invesco Ltd. now owns 2,071,657 shares of the basic materials company’s stock worth $652,241,000 after buying an additional 327,302 shares in the last quarter. Axxcess Wealth Management LLC lifted its holdings in shares of Carpenter Technology by 60.6% in the fourth quarter. Axxcess Wealth Management LLC now owns 2,213 shares of the basic materials company’s stock worth $697,000 after buying an additional 835 shares in the last quarter. Corient Private Wealth LLC purchased a new position in shares of Carpenter Technology in the fourth quarter worth $386,000. Mercer Global Advisors Inc. ADV lifted its holdings in shares of Carpenter Technology by 22.8% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 6,127 shares of the basic materials company’s stock worth $1,929,000 after buying an additional 1,139 shares in the last quarter. Finally, Raymond James Financial Inc. lifted its holdings in shares of Carpenter Technology by 4.3% in the fourth quarter. Raymond James Financial Inc. now owns 464,985 shares of the basic materials company’s stock worth $147,572,000 after buying an additional 19,345 shares in the last quarter. Hedge funds and other institutional investors own 92.03% of the company’s stock.

About Carpenter Technology

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. It serves to aerospace, defense, medical, transportation, energy, industrial, and consumer markets.

Further Reading

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