NYSE$CR

Crane Co · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported impressive Q4 2023 results with strong operational performance and progress on capital deployment.

Crane Company reported a strong fourth quarter in 2023, with a 10% increase in sales and a 38% increase in operating profit. The company also provided 2024 guidance and raised the annual dividend by 14%.

  • EPS of $0.86 and adjusted EPS of $0.90.
  • Core year-over-year sales growth of 5% and core year-over-year backlog growth of 8%.
  • Year-over-year growth in operating profit from continuing operations of 38%, and year-over-year growth in adjusted operating profit from continuing operations of 14%.
  • Introduced 2024 adjusted EPS guidance of $4.55-$4.85 reflecting 10% growth compared to 2023 adjusted EPS.

Headline financials

Total Revenue

$533M

Previous: $824M-35.3%
EPS (adj)

$0.90

Previous: $2.13-57.7%
Core Sales Growth

5.0%

No prior period
Capital Expenditures

-$13M

No prior period
Net Income

$49.4M

Previous: $97.2M-49.2%
Operating Income

$67M

Previous: $129M-48.2%
Gross Profit

$194M

Previous: $336M-42.4%
Stock-Based Comp

$4.2M

Previous: $5.7M-26.3%

Revenue & EPS history

Crane · Revenue · Quarterly

$533M

Q4 2023-35.3%vs Q4 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Crane · $267M total across 1 segment · Q3 2023

  • Process Flow Tech
    $267M

Forward guidance

The company introduced full year 2024 EPS guidance in a range of $4.55-$4.85, and free cash flow guidance of $240-$265 million.

Tailwinds

  • Sales of approximately $2.25 billion, up 8% compared to 2023
  • Core sales growth of approximately 3% to 5% (10% at Aerospace & Electronics, and flat at Process Flow Technologies and Engineered Materials)
  • Acquisition benefit of approximately 4% (4.5% at each Aerospace & Electronics and Process Flow Technologies)
  • Operating margins of approximately 20.1%
  • Diluted shares of ~58 million

Headwinds

  • Corporate cost of ~$75 million
  • Net non-operating expense of ~$20 million
  • Tax rate of ~23.5%

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 12 quarterly earnings reports · overlaid with Q4 2023

Historical avgQ4 2023

+0.8%

Avg return

Earnings day

+1.8%

Avg return

5 days after

+5.2%

Avg return

30 days after

58%

38 / 65 earnings

Positive

+11.6%

Q3 2023

Best reaction

-11.4%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.7%-5.9%-1.0%
Q4 2025-11.4%-12.9%-2.7%
Q3 2025+0.0%-0.6%-4.4%
Q2 2025-0.9%-0.5%-4.2%
Q1 2025+1.3%+5.3%+7.9%
Q4 2024+8.7%+5.3%+0.8%
Q3 2024+6.6%+5.6%+21.8%
Q2 2024-4.7%-8.2%-2.5%
Q1 2024+6.7%+11.5%+13.3%
Q4 2023+8.8%+11.5%+9.2%
Q3 2023+11.6%+8.5%+27.9%
Q2 2023+2.7%+3.5%-4.6%
Q1 2023-2.5%+0.4%+5.5%
Q4 2022+6.7%
Q3 2022-1.5%
Q2 2022-2.2%
Q1 2022-5.7%
Q4 2021+1.9%
Q3 2021+7.6%
Q2 2021+3.4%
Q1 2021+3.7%
Q4 2020-4.1%
Q3 2020-4.7%
Q2 2020-5.9%
Q1 2020+6.9%
Q4 2019-0.2%
Q3 2019-6.2%
Q2 2019+4.1%
Q1 2019-2.2%
Q4 2018+4.3%
Q3 2018-1.3%
Q2 2018-0.8%
Q1 2018-7.7%
Q4 2017+2.9%
Q3 2017+2.0%
Q2 2017-7.3%
Q1 2017+5.0%
Q4 2016-3.1%
Q3 2016+11.5%
Q2 2016+5.4%
Q1 2016-0.2%
Q4 2015+3.8%
Q3 2015+4.8%
Q2 2015+0.4%
Q1 2015+1.4%
Q4 2014+2.4%
Q3 2014+0.3%
Q2 2014-0.2%
Q1 2014+3.1%
Q4 2013+1.6%
Q3 2013+1.8%
Q2 2013-1.1%
Q1 2013+0.4%
Q4 2012+2.0%
Q3 2012+3.4%
Q2 2012+1.3%
Q1 2012-2.0%
Q4 2011-1.7%
Q3 2011+1.2%
Q2 2011-4.4%
Q1 2011+1.3%
Q4 2010+0.1%
Q3 2010+1.4%
Q2 2010-0.3%
Q1 2010-5.4%

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