- Carpenter Technology reported net sales of $755.6 million in the fourth quarter, which is a 5.4% year-over-year decrease.
- The net sales missed the estimated figure of $813.7 million.
- The company’s diluted earnings per share (EPS) increased to $2.21 from $1.85 in the previous year.
- Adjusted EPS also stood at $2.21.
- For fiscal year 2026, Carpenter Technology expects operating income to range between $660 million and $700 million.
- This projected operating income indicates a 26% to 33% increase over fiscal year 2025 adjusted operating income.
- The company anticipates generating $240 million to $280 million in adjusted free cash flow for fiscal year 2026.
- In the first quarter of fiscal year 2026, the company expects operating income to be between $148 million and $152 million.
- The company remains on track to achieve a target of $765 million to $800 million in operating income by fiscal year 2027.
- This target represents nearly a 25% compound annual growth rate from fiscal year 2025 adjusted operating income.
- The SAO segment reported $167 million in operating income, surpassing expectations for the quarter.
- Expected increases in operating income are attributed to higher sales and improved margins due to better productivity, product mix, and pricing strategies.
- Analyst recommendations include 7 “buys”, 2 “holds”, and no “sells”.
A look at Carpenter Technology Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
According to Smartkarma Smart Scores, Carpenter Technology shows a promising long-term outlook based on its ratings. With a perfect score of 5 in Growth and Momentum, the company is positioned well for future expansion and market performance. Furthermore, Carpenter Technology received positive scores in Resilience and Dividend, indicating stability and potential for income generation. Although the Value score is modest at 2, the overall picture suggests a strong growth potential for the company.
Carpenter Technology Corporation specializes in manufacturing stainless steels, titanium, and specialty metal alloys. The company excels in processing basic metal alloying elements into a variety of finished products, including billets, bars, rods, and specialized shapes. Additionally, Carpenter Technology is involved in producing engineered products such as ceramics and metal-injected molded designs, showcasing its diverse range of offerings in the industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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