Manitowoc (NYSE:MTW) Q3 Earnings: What Can You Expect?

in EARNINGS/INVESTING IDEAS by

The Manitowoc Company, Inc. (NYSE:MTW) is scheduled to report Q3 earnings results after markets close for trading on November 4, 2020.

The company is expected to report earnings of -$0.29/share on revenue of $312.3 million. The consensus earnings per share (EPS) of -$0.29/share is based on a poll of 12 analysts and represents a decline in eps of −154.1% over the same quarter last year, when the company reported earnings of $0.54/share.

The revenue forecast of $312.3 million based on a poll of 10 analysts implies a year-over-year (YoY) decline in revenue of −30.3%. Last year the company reported $448 million in revenue for the quarter.

Expected to report EPS of -$0.29/share for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $312.29 $448.00 −30.3%
EPS -$0.29 $0.54 −154.1%

Earnings Call Trends

Historically, management has exceeded analyst expectations 7 out of the last 8 tracked quarters, and missed expectations 1 quarter.

What are your expectations from The Manitowoc Company, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 -$0.58 -$0.47 18.8% Beat
Q1, 2020 -$0.11 -$0.18 -68.4% Missed
Q4, 2019 $0.29 $0.35 21.8% Beat
Q3, 2019 $0.34 $0.54 57.9% Beat
Q2, 2019 $0.49 $0.94 90.2% Beat
Q1, 2019 -$0.02 $0.08 510.3% Beat
Q4, 2018 $0.01 $0.16 1,526.0% Beat
Q3, 2018 $0.12 $0.20 72.4% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by falling −7.4%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
August 5, 2020 $10.83 $10.03 −7.4% Decline
May 7, 2020 $8.32 $8.94 7.5% Increase
February 6, 2020 $16.05 $14.06 −12.4% Decline
November 7, 2019 $13.51 $16.21 20.0% Increase

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −3.04, the model suggests that the company is not likely to be an earnings manipulator. A value of −3.04 implies a 0.1% chance of earnings manipulation.

Fundamentals And Technical Analysis

The Manitowoc Company, Inc. is currently trading at $7.86/share, down −4.2% for the day. The company is trading at approximately 44.2% of its 52-week high of $17.78/share. The company’s stock price is down −21.7% since the last earnings report and down −9.8% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 41.08 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:MTW Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 39.85 and a forward P/E multiple of −7.42.

The Manitowoc Company, Inc.’s current share price also implies a price-to-book (P/B) multiple of 0.44. The following table summarizes some other key fundamental ratios:

Data as of October 28, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $7.86
P/E Ratio 39.9x
P/E Ratio (Fwd) −7.4x
PEG Ratio 0.4
Total Debt / Total Capital 58.2%
Levered Free Cash Flow $50 million
EV / EBITDA 5.7x

Finbox

The Manitowoc Company, Inc. is a micro-cap stock with a market capitalization of $283.1 million and a total enterprise value of $549.3 million. The company operates in the Industrials sector and the Machinery industry.

The Manitowoc Company, Inc. provides engineered lifting equipment for the construction industry in the Americas, Europe, Africa, the Middle East, and the Asia Pacific. It designs, manufactures, and distributes crawler-mounted lattice-boom cranes under the Manitowoc brand; a line of top-slewing and self-erecting tower cranes under the Potain brand; mobile telescopic cranes under the Grove, Shuttlelift, and National Crane brands; and a hydraulically powered telescopic boom trucks under the National Crane brand. The company also provides crane product parts and services; and crane rebuilding, remanufacturing, and training services under the Manitowoc Crane Care brand. Its products are used in various applications, including energy production/distribution and utilities; petrochemical and industrial projects; infrastructure applications, such as road, bridge, and airport construction; and commercial and high-rise residential construction. The company was founded in 1902 and is headquartered in Milwaukee, Wisconsin.

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