Carpenter Technology Corporation, listed as NYSE:CRS, is set to release its quarterly earnings on January 30, 2025. The company is known for its specialty alloys and engineered products, serving various industries like aerospace and energy. As it prepares to announce its second-quarter fiscal 2025 results, Wall Street anticipates an earnings per share (EPS) of $1.56 and revenue of approximately $723.8 million.
The Zacks Consensus Estimate projects CRS's revenue to be slightly lower at $718 million, but this still represents a 15% increase from the previous year. This growth is driven by strong demand across its end markets. However, supply-chain challenges may present some hurdles. Despite these challenges, CRS has a history of surpassing earnings expectations, with an average earnings surprise of 14.1% over the last four quarters.
The earnings per share for CRS is estimated at $1.58, reflecting a significant year-over-year growth of 85.9%. Over the past 60 days, the earnings estimate has increased by 1%, indicating positive sentiment among analysts. This growth is noteworthy, considering the company's price-to-earnings (P/E) ratio of 45.85, which suggests that investors are willing to pay a premium for its earnings potential.
CRS's financial metrics provide further insight into its valuation. The price-to-sales ratio of 3.67 and enterprise value to sales ratio of 3.87 indicate that investors are paying a substantial amount for each dollar of sales. The enterprise value to operating cash flow ratio of 35.51 highlights the company's cash flow generation relative to its valuation. Additionally, the earnings yield of 2.18% offers a perspective on the return on investment.
Carpenter Technology maintains a strong financial position with a debt-to-equity ratio of 0.42, indicating a relatively low level of debt compared to its equity. The current ratio of 3.84 suggests strong liquidity, enabling the company to cover its short-term liabilities effectively. As CRS prepares to release its earnings, these financial metrics will be closely watched by investors and analysts alike.
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