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Crane improves Q3 2021 sales, earnings driven by payments, merchandising technologies

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October 26, 2021

Crane Co. improved its sales and earnings for the 2021 third quarter ending Sept. 30, with payments and merchandising technologies leading the growth compared to the 2020 third quarter, according to an earnings report.

Third quarter 2021 sales were $833.5 million, an increase of 21% compared to the third quarter of 2020. The sales increase was comprised of a $134 million, or 20%, increase in core sales, and a $13 million, or 2%, benefit from favorable foreign exchange.

Third quarter 2021 GAAP earnings from continuing operations per diluted share of $1.87, compared to 84 cents in the third quarter of 2020. Excluding special items, third quarter 2021 EPS from continuing operations was $1.89, compared to 93 cents in the third quarter of 2020. GAAP EPS rose from 97 cents to $1.96.

"We delivered extremely strong results in the third quarter with record EPS. Performance was outstanding across all of our businesses, and we were able to achieve 20% core year-over-year sales growth and high-teens adjusted operating margins even in the face of continued inflationary pressures and ongoing supply chain challenges," Max Mitchell, president and CEO, said in the press release.

The $833.5 million in quarterly revenue beat analyst expectations by $62.89 million, while the Non-GAAP EPS of $1.89 beat expectations by 53 cents and the GAAP EPS of $1.96 beat expectations by 56 cents, according to Seeking Alpha.

Shares traded at $93.49 today against a 52-week range of $49.05-$104.74.

"Looking ahead, we see further broad-based strengthening across our primary end markets which is reflected in our 31% core year-over-year order growth and 13% core year-over-year backlog growth. Considering our strong performance in the third quarter and our outlook for the balance of the year, we are raising the midpoint of our adjusted EPS guidance by 35 cents to a range of $6.35-$6.45 reflecting an approximate 80% year-over-year increase," Mitchell said.

The payments and merchandising technologies division led growth for the company, boosting sales 32% from $277 million to $466 million in the comparative quarters, while operating profit rose 107% from $41 million to $84 million.

The company's process flow technologies sales rose 19% from $252 million to $299 million, while operating profit jumped 71% from $26 million to $44 million.

Aerospace and electronics sales rose 7% from $157 million to $169 million, while operating profit jumped 33% from $25 million to $33 million.

In May, the company announced it signed an agreement to sell its engineered materials segment. Consequently, starting with second quarter 2021 financial results, engineered materials has been presented as discontinued operations.

The company raised its 2021 full year GAAP EPS from continuing operations guidance to a range of $6.50-$6.60, compared to the prior range of $6.05-$6.25.

The company also raised its 2021 full year EPS from continuing operations guidance excluding special items (adjusted) to a range of $6.35-$6.45, compared to the prior range of $5.95-$6.15.