What happened
Shares of Manitowoc(NYSE: MTW) climbed 26% over the past week, according to data provided by S&P Global Market Intelligence, after the crane manufacturer reported sharply higher revenue and profits.
So what
Manitowoc's sales jumped 24.9% year over year to $621.6 million in the fourth quarter. That easily surpassed Wall Street's estimates, which had called for sales of $565.8 million.
"As we entered the quarter, we felt confident that our shippable backlog and inventory levels would allow us to hit the low end of our guidance," CEO Aaron Ravenscroft said during a conference call with analysts. "The hard work of our team and a bit of luck with parts and vessel availability helped us end the year even stronger than we expected."
Moreover, Manitowoc's fourth-quarter orders grew by 15.1% to $708 million, which brought its backlog to over $1 billion at the end of 2022. "The year-over-year increase was primarily driven by higher pricing and a couple of large dealer orders," CFO Brian Regan said.
The company's profitability also improved dramatically. Manitowoc's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) soared 50.6% to $51.5 million. And its net income -- adjusted to exclude a non-cash impairment charge -- increased 57% to $26 million, or $0.74 per share. That, too, far exceeded Wall Street's expectations. Analysts had forecasted adjusted per-share profits of $0.26.
Now what
Management guided for net sales of roughly $2.1 billion in 2023, with adjusted EBITDA of $130 million to $160 million and adjusted earnings per share of $0.35 to $1.15.
During the company's earnings call, Ravenscroft said attractive growth opportunities in the Middle East -- where large construction projects are expected to boost demand for cranes in the coming year -- should help to offset a slowdown in its European business.
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Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
