Crane Holdings (CR) Earnings Preview: What to Expect on October 28th

## Crane Holdings (CR) Earnings Preview: What to Expect on October 28th

Investors are gearing up for Crane Holdings’ (CR) quarterly earnings announcement, scheduled for Monday, October 28th. All eyes will be on the company’s performance, with analysts predicting an earnings per share (EPS) of $1.31. As always, investors are hoping for news of exceeding estimates and positive guidance for the next quarter. It’s important to remember that stock prices can be heavily influenced by future projections, not just past performance.

## Looking Back at Crane Holdings’ Recent Performance

In the last quarter, Crane Holdings beat EPS estimates by $0.07, resulting in a 4.84% drop in share price the following day. Here’s a look at their past performance and the subsequent price change:

| Quarter | EPS Estimate | EPS Actual | Price Change % |
|—|—|—|—|
| Q2 2024 | $1.23 | $1.30 | -5.0% |
| Q1 2024 | $1.12 | $1.22 | 6.0% |
| Q4 2023 | $0.82 | $0.90 | 8.0% |
| Q3 2023 | $0.87 | $1.03 | 14.0% |

## Market Sentiment and Analyst Insights

As of October 24th, Crane Holdings shares were trading at $150.52. Over the past 52 weeks, shares are up 60.95%, suggesting long-term shareholders are likely bullish heading into this earnings release. But what are analysts saying?

The consensus rating for Crane Holdings is

Buy

, based on 3 analyst ratings. The average one-year price target is $177.33, implying a potential 17.81% upside. This positive outlook suggests that analysts are confident in the company’s future growth potential.

## Comparing Crane Holdings to its Peers

To gain further perspective, let’s look at the analyst ratings and average one-year price targets for three prominent industry players: Donaldson, Middleby, and Flowserve.

*

Donaldson:

Analysts currently rate Donaldson as

Neutral

, with an average one-year price target of $71.0, indicating a potential 52.83% downside.
*

Middleby:

Analysts favor a

Buy

trajectory for Middleby, with an average one-year price target of $154.25, suggesting a potential 2.48% upside.
*

Flowserve:

Analysts also favor a

Buy

trajectory for Flowserve, with an average one-year price target of $59.2, suggesting a potential 60.67% downside.

## Key Takeaway: Crane Holdings’ Financial Strength

Analyzing Crane Holdings’ key financial metrics against its peers offers valuable insights:

| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|—|—|—|—|—|
| Crane | Buy | 14.05% | $223.90M | 4.98% |
| Donaldson | Neutral | 6.36% | $334.80M | 7.38% |
| Middleby | Buy | -4.66% | $379.64M | 3.43% |
| Flowserve | Buy | 7.08% | $366.10M | 3.70% |

Key takeaway:

Crane Holdings ranks highest in

Gross Profit

among its peers, indicating strong profitability. It stands in the middle for

Revenue Growth

and

Return on Equity

.

## Delving Deeper: Understanding Crane Holdings’ Business

Crane Holdings is a diversified industrial firm with a diverse range of products, including valves, pumps, aerospace components, and fiberglass-reinforced plastic panels. The company operates in three key segments: aerospace and electronics, process flow technologies, and engineered materials. In 2023, Crane Holdings generated approximately $2.1 billion in revenue.

## Crane Holdings’ Financial Performance: A Detailed Look

*

Market Capitalization:

Crane Holdings’ market capitalization is below the industry average, suggesting it’s relatively smaller compared to peers. This could be due to factors such as perceived growth potential or operational scale.
*

Revenue Growth:

Crane Holdings reported positive revenue growth for the past three months. As of June 30, 2024, the company achieved a 14.05% revenue growth rate, significantly exceeding the average growth rate of its peers within the Industrials sector. This indicates a substantial increase in the company’s top-line earnings.
*

Net Margin:

Crane Holdings’ net margin is below industry averages, suggesting potential challenges in maintaining profitability. With a net margin of 12.32%, the company may face hurdles in effectively managing costs.
*

Return on Equity (ROE):

Crane Holdings boasts a strong ROE, surpassing industry averages. With a ROE of 4.98%, the company demonstrates efficient use of equity capital and a robust financial performance.
*

Return on Assets (ROA):

Similar to ROE, Crane Holdings’ ROA stands above industry averages. With an impressive ROA of 2.91%, the company demonstrates effective asset utilization and a strong financial performance.
*

Debt Management:

Crane Holdings maintains a below-average debt-to-equity ratio of 0.26, suggesting a prudent financial strategy and a balanced approach to debt management.

Stay tuned for Crane Holdings’ earnings announcement on October 28th. We will provide a comprehensive analysis of the results, including key takeaways for investors.