Vending

Crane improves Q2 2022 results, raises FY guidance

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July 26, 2022

Crane Holdings Co. reported improved earnings on a 1% sales increase for Q2 2022 and raised its full year guidance, according to an earnings release. Highlights include:

Sales rose 1% from $855.5 million in Q2 2021 to $864 million for the three months ending June 30, 2022. The sales increase was comprised of a $60 million, or 7%, increase in core sales, partially offset by a $30 million, or 4%, impact from unfavorable foreign exchange, and a $22 million, or 3%, divestiture impact.
Net income to common shareholders rose from $138.3 million to $280.5 million in the comparable quarters.
Second quarter GAAP earnings per diluted share rose from $2.33 to $4.93 in the comparative quarters, including an after-tax gain of $204 million, or $3.58 per share, on the May 2022 sale of Crane Supply. Excluding special items, second quarter sales fell from $1.93 to $1.90.
Payment and merchandising technologies sales rose 2% from $328 million to $334 million.
Engineered materials jumped 23% from $59 million to $73 million.
Aerospace and electronics rose 3% from $158 million to $162 million.
Process flow technologies fell 5% from $311 million to $296 million.

Shares traded today at $92.60 against a 52-week range of $82.21-$114.87.

The $864.2 million in quarterly revenue beat analyst expectations by $43.23 million, while the non-GAAP EPS of $1.90 beat expectations by 9 cents, according to Seeking Alpha.

The company is adjusting full year 2022 GAAP EPS guidance to $9.80-$10.20 from $6.80-$7.20, primarily to reflect the second quarter $3.58 after-tax gain on the sale of Crane Supply.

"Our momentum continues with another quarter of strong results reflecting differentiated execution despite a challenging operational environment as well as solid underlying trends in our primary end markets," Max Mitchell, president and CEO, said in the press release. "Our overall performance in the first half, with adjusted operating margins of 17.3%, core sales growth of 7%, and core order growth of 14%, all support our outlook, and we are well on-track to achieve our full-year guidance."

The company declared a 47 cents dividend, in line with expectations, payable Sept. 14 for shareholders of record Aug. 31.