The multi-industry, capital goods manufacturer, known for its crane business, has solid operational performance but faces industry sluggishness, analysts said.
"Manitowoc's track record of solid operational performance and free cash flow conversion should be complemented by numerous cost saving initiatives and reversal of operational headwinds," analyst said.
"[However] we expect crane orders to remain range-bound, as muted global macro recovery is not strong enough to ignite fleet reinvestment," analysts added.
Shares of Manitowoc closed down 0.09% at $21.28 yesterday.
Separately, TheStreet Ratings team rates MANITOWOC CO as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate MANITOWOC CO (MTW) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, increase in stock price during the past year and attractive valuation levels. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- MANITOWOC CO has improved earnings per share by 38.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, MANITOWOC CO increased its bottom line by earning $1.13 versus $0.77 in the prior year. This year, the market expects an improvement in earnings ($1.21 versus $1.13).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Machinery industry. The net income increased by 38.2% when compared to the same quarter one year prior, rising from $52.90 million to $73.10 million.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- MTW, with its decline in revenue, slightly underperformed the industry average of 2.3%. Since the same quarter one year prior, revenues slightly dropped by 2.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full analysis from the report here: MTW Ratings Report