NYSE$CXT

Crane NXT Co · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Crane NXT reported first quarter 2024 financial results, including a decrease in net sales and operating profit, but completed the acquisition of OpSec Security and increased its full-year sales guidance.

Crane NXT reported first quarter 2024 net sales of $313.6 million, a decrease of 4.7% year-over-year, with GAAP EPS of $0.66 and Adjusted EPS of $0.85. The company completed the acquisition of OpSec Security and increased its full-year 2024 sales guidance to 5% to 8%. Operating profit was $55.4 million, down from $65.9 million in the prior year.

  • Crane NXT completed the acquisition of OpSec Security on May 3, 2024, for $270 million in cash, strengthening its brand protection and authentication solutions portfolio.
  • First quarter core sales declined 4.2% year-over-year, resulting in GAAP EPS of $0.66 and Adjusted EPS of $0.85, which was in line with the company's expectations.
  • The company increased its full-year 2024 sales guidance to 5% to 8% due to the OpSec acquisition, while reaffirming its Adjusted EPS guidance for the full year.
  • Operating profit for Q1 2024 was $55.4 million, a decrease from $65.9 million in Q1 2023, primarily due to lower sales at Crane Payment Innovations and acquisition-related expenses, partially offset by favorable pricing and productivity.

Headline financials

Total Revenue

$314M

Previous: $843M-62.8%
EPS

$0.66

Previous: $1.84-64.1%
Core Sales Growth

-4.2%

No prior period
Operating Profit Margin

17.7%

No prior period
Adjusted Operating Profit

$71.1M

No prior period
Adjusted Operating Profit Margin

22.7%

No prior period
Adjusted Free Cash Flow

-$1.7M

No prior period
Total Debt

$670M

No prior period
Total Backlog

$422M

No prior period
Adjusted EBITDA

$80.7M

No prior period
Adjusted EBITDA Margin

25.7%

No prior period
Net Leverage Ratio

1.2

No prior period
Capital Expenditures

-$12.5M

Previous: -$12.9M+3.1%
Free Cash Flow

$25.3M

Previous: $92.8M-72.7%
Net Income

$37.8M

Previous: $106M-64.2%
Operating Income

$55.4M

Previous: $152M-63.6%
Gross Profit

$152M

Previous: $362M-57.9%
Cash & Equivalents

$221M

Previous: $510M-56.8%
Total Assets

$2.1B

Previous: $4.34B-51.6%

Revenue & EPS history

Crane NXT · Revenue · Quarterly

$314M

Q1 2024-62.8%vs Q1 2023
Beat estimate in 3 of 3 quarters(100%)
ActualEstimate

Forward guidance

Crane NXT updated its full-year 2024 guidance to include the acquisition of OpSec Security, increasing sales growth expectations while maintaining Adjusted EPS guidance.

Tailwinds

  • Crane NXT Sales Growth guidance increased to 5% to 8% (from -1% to +3%) due to the OpSec acquisition.
  • Adjusted EPS guidance remains consistent at $4.10 to $4.35.
  • Corporate Expense guidance remains consistent at approximately $53 million.
  • Adjusted Tax Rate guidance remains consistent at approximately 21%.
  • Adjusted Free Cash Flow Conversion guidance remains consistent at approximately 100%.

Headwinds

  • Adjusted Segment Operating Margin guidance decreased to 26% to 28% (from 27% to 29%).
  • Non-Operating Expense, Net guidance increased to approximately $47 million (from approximately $37 million).
  • No specific negative changes were highlighted for Diluted Shares, which remain at approximately 57.6 million.
  • The core sales growth guidance for CPI and Crane Currency segments remains unchanged, indicating no improvement in underlying organic growth expectations.
  • The decrease in Adjusted Segment Operating Margin suggests potential margin pressure despite the acquisition.

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 Q1 2024

Historical avgQ1 2024

+0.1%

Avg return

Earnings day

-0.7%

Avg return

5 days after

-1.3%

Avg return

30 days after

46%

11 / 24 earnings

Positive

+7.0%

Q1 2025

Best reaction

-4.5%

Q3 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.9%-6.6%-20.8%
Q4 2025+3.4%+2.9%-18.3%
Q3 2025-4.4%-4.5%-9.5%
Q1 2025+7.0%+16.0%+13.5%
Q3 2024+0.6%+0.2%-0.3%
Q2 2024+0.0%-7.4%+0.7%
Q1 2024+0.0%-6.8%-1.8%
Q4 2023+0.0%-4.6%+4.5%
Q3 2023-0.7%-5.8%-6.8%
Q3 2022+0.0%-3.2%-8.4%
Q2 2023+1.4%+6.4%+2.2%
Q1 2023+0.3%+1.2%+12.5%
Q2 2022+0.8%+1.8%-5.2%
Q1 2022+2.6%-4.3%-3.3%
Q3 2021-1.1%+0.3%-6.6%
Q2 2021-1.2%-1.2%-0.9%
Q1 2021-0.8%+1.1%-3.5%
Q3 2020-4.5%+0.0%+35.2%
Q2 2020+0.4%+0.9%+2.1%
Q1 2020+4.7%-7.7%+2.2%
Q3 2019-0.5%+4.3%+7.2%
Q2 2019+0.7%-4.1%-10.7%
Q1 2019-3.0%+1.2%-10.9%
Q3 2018+1.4%+3.7%-3.7%

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