Shares of The Manitowoc Company, Inc. MTW have lost 3% since it reported third-quarter 2024 adjusted loss per share of 8 cents on Oct. 30. MTW missed the Zacks Consensus Estimate of earnings of 10 cents per share. The company reported adjusted earnings per share of 22 cents in the year-ago quarter.

Including one-time items, the company reported a loss of 20 cents per share against the prior-year quarter’s earnings of 29 cents per share.

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Manitowoc’s revenues moved up 1% year over year to $525 million. The top line beat the Zacks Consensus Estimate of $521 million. While non-new machine sales were robust, the company witnessed low demand for new cranes. 

Orders decreased 20% year over year to $425 million. The backlog at the end of the quarter was $742 million.

Manitowoc’s Margins Contract in Q3

The cost of sales moved up 3.1% year over year to $462 million. The gross profit was down 9.5% year over year to $87.6 million. The gross margin was 16.7% compared with 18.6% in the prior-year quarter.

Adjusted engineering, selling and administrative expenses decreased 1.2% year over year to $76.3 million. 

Manitowoc reported an operating income of $7.5 million compared with $18 million in the year-ago quarter. Adjusted operating income was $10.6 million, down from $18.9 million in the prior-year quarter. Adjusted operating margin was 2%, a contraction from 3.6% in the prior-year quarter.

Adjusted EBITDA was $26 million compared with $33 million in the prior-year quarter. The adjusted EBITDA margin fell to 5% from the year-ago quarter’s 6.4%.

MTW’s Cash Flow & Balance Sheet

Manitowoc reported cash and cash equivalents of $23 million at the end of the third quarter, down from $34 million at 2023-end. The long-term debt was $427 million at the end of the quarter, up from $359 million at 2023-end. The company used $63 million of cash in operating activities in the first nine-month period of 2024 against a cash inflow of $23.2 million in the last-year comparable period.

Manitowoc Lowers 2024 EBITDA Guidance

Given the weak third-quarter results, MTW expects adjusted EBITDA to be at the low end of its earlier guided $125-$140 million.

MTW Stock’s Price Performance

In the past year, MTW’s shares have lost 32% against the industry’s 55.8% growth.

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Manitowoc’s Zacks Rank

Manitowoc currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performances of Other Manufacturing Stocks

Caterpillar Inc. CAT reported third-quarter 2024 adjusted earnings per share of $5.17, which missed the Zacks Consensus Estimate of $5.33 by a margin of 3%. The bottom-line figure was 6% lower than the year-ago quarter.

Caterpillar reported revenues of around $16.1 billion, which missed the Zacks Consensus Estimate of $16.35 billion by a margin of 1.5%. The top line declined 4% year over year as favorable price realization was offset by an overall decline in volumes.

H&E Equipment HEES reported earnings per share of 85 cents, which missed the Zacks Consensus Estimate of 97 cents. The bottom line marked a 42% decline from the year-ago quarter. 

Revenues dipped 4% year over year to $385 million, which missed the consensus estimate of $392 million. Rental revenues rose 2.8% from the year-ago quarter, primarily due to the ongoing expansion of HEES’ branch network.

Terex TEX reported adjusted earnings per share of $1.46, which beat the Zacks Consensus Estimate of $1.27. The bottom line fell 17% from the prior-year quarter.

Revenues fell 6% year over year to $1.2 billion, which surpassed the consensus estimate of $1.14 billion. The company witnessed lower-than-expected volumes. 

 

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