Crane Co. (CR) continues to outpace the market, approaching a 52-week high. The company also boasts strong fundamentals as analysts lift earnings forecasts.
Company Description
Crane Co. manufactures highly engineered industrial products. Founded in 1855, the company provides products and solutions to customers in the aerospace, electronics, hydrocarbon processing, petrochemical, chemical, power generation, automated merchandising, transportation and other markets. Crane’s five business segments are: Aerospace & Electronics, Engineered Materials, Merchandising Systems, Fluid Handling and Controls. Crane has approximately 11,000 employees in North America, South America, Europe, Asia and Australia.
Recent Events
The company recently announced that it sold its subsidiary General Technology Corporation to IEC Electronics Corp. (IEC) for $14.2 million. Crane noted that it expects to record a tax benefit of approximately $0.09 per share resulting from the divestiture.
Bullish Estimates and a Surging Share Price
The company upped the lower end of its full-year earnings guidance to a range of $1.90 – $2.05 from $1.75 – $2.05.
Analysts boosted the 2009 Zacks Consensus Estimate to $2.05 per share from the 2 months-ago level of $1.90. For the following year, analysts polled by Zacks are projecting earnings of $2.21 per share, versus the 2 months-ago level of $2.08.
Crane continues to outpace the market, approaching a 52-week high. Shares soared past the market by more than 70% over the past year.
Solid Income
The company recently declared a quarterly dividend of 20 cents per share. Crane’s dividend yield of 2.6% tops the industry average of 1.7%
A Strong Quarter
Third-quarter earnings per share of 60 cents surpassed the Zacks Consensus Estimate by 25% and matched the year-prior earnings. Sales of $551 million slipped 14% year-over-year.
Management noted that despite a 14% decline in sales from the third quarter of 2008, operating profit and earnings per share were flat compared to 2008, primarily reflecting the company’s success in re-aligning its cost base, adding that operating margin improved by 160 basis points, to 10.1%, compared to 8.5% a year ago.
The company said its $305 million in cash, $300 million revolving bank credit agreement and no near-term debt maturities provide it with a solid financial foundation to continue to manage through the current environment, positioning Crane for growth as end markets recover.
