NYSE$CRS

Carpenter Technology Corporation · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Carpenter Technology outperformed Q3 FY24 guidance, driven by improved operating performance and expanding margins.

Carpenter Technology delivered record adjusted operating income, driven by strong demand and improved productivity, particularly in the Aerospace and Defense and Medical end-use markets. The company is raising its Q4 FY24 outlook and pulling forward its FY27 goal.

  • Delivered record adjusted operating income of $90.0 million, up 29% sequentially and 129% year-over-year.
  • SAO segment exceeded expectations with operating income of $103.5 million, realizing adjusted operating margin of 21.4%.
  • Generated $61.9 million of adjusted free cash flow.
  • Accelerated growth with higher volumes sequentially and improved mix, primarily in Aerospace and Defense and Medical end-use markets.

Headline financials

Total Revenue

$685M

Previous: $690M-0.8%
EPS (adj)

$1.19

Previous: $0.38+213.2%
Capital Expenditures

-$21.6M

No prior period
Free Cash Flow

$6.3M

Previous: $18.6M-66.1%
Net Income

$6.3M

Previous: $18.6M-66.1%
Operating Income

$75.9M

Previous: $39.3M+93.1%
Gross Profit

$147M

Previous: $93.5M+57.2%
Cash & Equivalents

$53.5M

Previous: $22.3M+139.9%
Total Assets

$3.18B

Previous: $3.09B+2.6%
Stock-Based Comp

$5.2M

Previous: $3.3M+57.6%

Revenue & EPS history

Carpenter Technology · Revenue · Quarterly

$685M

Q3 2024-0.8%vs Q3 2023
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Carpenter Technology · $672M total across 2 segments · Q1 2024

  • Specialty Alloys Ops
    $570M+27.5%
  • Perf. Engineered Prod.
    $102M+9.2%

Forward guidance

Carpenter Technology is building momentum each quarter with increasing productivity and is pulling forward its FY27 goal with accelerating earnings growth and expanding operating margins.

Tailwinds

  • Rapidly accelerating quarterly earnings growth
  • Projecting $339 million to $344 million of adjusted operating income for FY24, an increase over previous guidance
  • Q3 FY24 adjusted operating income of $90 million up 29% sequentially and an all-time quarterly record
  • Approximately 60% of growth expected to be realized in year one of original four year goal
  • Projecting 25% increase in adjusted operating income in Q4 FY24 over Q3 FY24, which would result in another record quarter

Historical earnings impact

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

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

+1.0%

Avg return

Earnings day

+0.1%

Avg return

5 days after

+5.0%

Avg return

30 days after

55%

37 / 67 earnings

Positive

+22.6%

Q1 2026

Best reaction

-17.5%

Q1 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+0.6%-0.3%+9.5%
Q2 2026-6.3%+2.2%+20.0%
Q1 2026+22.6%+26.6%+26.4%
Q3 2025+4.5%+3.5%+20.7%
Q2 2025-7.4%-8.1%-1.0%
Q1 2025-0.8%+3.8%+21.8%
Q4 2024+15.9%-3.3%+0.2%
Q3 2024+16.6%+18.9%+29.4%
Q2 2024-4.0%-4.1%-2.4%
Q1 2024+3.3%+3.7%+13.3%
Q4 2023+2.6%-1.1%+6.9%
Q3 2023+9.3%+12.6%-4.9%
Q2 2023+11.8%+9.9%+7.6%
Q1 2023-2.6%+2.8%+10.6%
Q4 2022+8.3%+3.2%-0.7%
Q3 2022+2.7%+1.0%-2.9%
Q2 2022-1.2%-1.9%+22.6%
Q1 2022+1.5%+2.0%-3.8%
Q4 2021+0.1%-10.3%-13.9%
Q3 2021-10.9%-6.4%+12.8%
Q2 2021-9.1%-7.8%+18.3%
Q1 2021+8.5%+2.4%+49.3%
Q4 2020-5.1%+6.7%-4.1%
Q3 2020-9.4%-12.7%-1.1%
Q2 2020-9.2%-2.9%-16.0%
Q1 2020-3.1%+1.4%+2.8%
Q4 2019+4.4%+2.3%+6.2%
Q3 2019-1.1%-1.6%-14.8%
Q2 2019+5.3%+0.3%+6.4%
Q1 2019-16.6%-19.2%-20.6%
Q4 2018+8.1%+0.1%+2.3%
Q3 2018+11.6%+8.5%+19.0%
Q2 2018-6.6%-7.4%-2.1%
Q1 2018-0.3%-1.3%-4.5%
Q4 2017+5.4%-0.3%-0.1%
Q3 2017+1.8%-1.3%-8.5%
Q2 2017+7.1%+4.8%-4.1%
Q1 2017-17.5%-18.5%-0.4%
Q4 2016-0.5%-2.7%-7.1%
Q3 2016+1.1%
Q2 2016+5.6%
Q1 2016+8.8%
Q4 2015-0.7%
Q3 2015+4.0%
Q2 2015-6.4%
Q1 2015+10.4%
Q4 2014-7.0%
Q3 2014-1.2%
Q2 2014-0.5%
Q1 2014-1.3%
Q4 2013+8.1%
Q3 2013-4.3%
Q2 2013+0.4%
Q1 2013-2.4%
Q4 2012+1.7%
Q3 2012+7.6%
Q2 2012-3.4%
Q1 2012-11.2%
Q4 2009-0.6%
Q4 2011-0.6%
Q3 2010+5.4%
Q3 2011+5.4%
Q2 2010+1.6%
Q2 2011+1.6%
Q1 2011+0.6%
Q4 2010+0.6%
Q1 2010+0.6%

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