On Friday, Stifel adjusted its outlook on Manitowoc Company Inc (NYSE:MTW), a manufacturer of cranes and lifting solutions, by reducing its price target on the stock to $15.00 from the previous $20.00. Despite this change, the firm has chosen to maintain a Hold rating on the shares.
The first quarter of 2024 saw Manitowoc's sales slightly surpass expectations despite a year-over-year decline of 2.6%, totaling $495 million. This was primarily due to a decrease in European tower crane sales, which was partially offset by stronger mobile crane sales in Europe and the Americas. The company experienced a margin compression of 260 basis points, influenced by the shift in sales mix.
Manitowoc ended the quarter with a backlog valued at $971 million, with orders growing by 5.6% year-over-year to reach $554 million. Geographically, the U.S. and Middle East markets were highlighted as particularly strong areas, bolstered by large-scale projects and government funding. Conversely, the European market presented a mixed picture, with steady mobile crane sales being undermined by weaker tower crane performance.
Looking forward, Manitowoc reaffirmed its full-year guidance, projecting sales in the range of $2.275 to $2.375 billion and Adjusted EBITDA between $150 and $180 million. The company anticipates an improvement in its tower crane business in the second half of 2024, as it expects to benefit from easier year-over-year comparisons and a positive trend in orders.
The firm also underscored Manitowoc's commitment to its CRANES +50 strategy, which aims to expand its aftermarket business. This strategic focus is seen as a positive move for the company regardless of the broader operating environment.
InvestingPro Insights
As Manitowoc Company Inc (NYSE:MTW) navigates a dynamic market environment, real-time data from InvestingPro provides a clearer picture of the company's financial health and market performance. Manitowoc's market capitalization stands at a modest $429.69 million, with a P/E Ratio of 15.66, reflecting investor assessments of its earnings potential. Intriguingly, the adjusted P/E Ratio for the last twelve months as of Q1 2024 dips to 8.25, suggesting a potentially undervalued stock relative to its recent earnings.
InvestingPro Tips indicate that Manitowoc has a perfect Piotroski Score of 9, which is a strong signal of the company's financial stability. However, the company operates with a significant debt burden, which investors should consider when evaluating its long-term sustainability. Analysts have also revised their earnings expectations downwards for the upcoming period, which may influence the stock's short-term performance.
Revenue for the last twelve months as of Q1 2024 reached $2.214 billion, with a growth of 6.38% indicating the company's ability to increase sales. Despite the overall revenue growth, the quarterly comparison shows a slight decline of 2.6%. Manitowoc's gross profit margin stands at 18.58%, which is a critical measure of its manufacturing efficiency and pricing strategy.
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