Core Insights - Carpenter Technology (CRS) reported quarterly earnings of $2.43 per share, exceeding the Zacks Consensus Estimate of $2.13 per share, and up from $1.73 per share a year ago [1] - The company achieved an earnings surprise of +14.08% and has surpassed consensus EPS estimates in all four quarters over the past year [2] - Revenues for the quarter ended September 2025 were $733.7 million, slightly above the Zacks Consensus Estimate by 0.63%, and an increase from $717.6 million year-over-year [3] Earnings Performance - The earnings surprise of +14.08% indicates strong performance relative to expectations [2] - The company has consistently outperformed EPS estimates, with a previous quarter's earnings of $2.21 against an expectation of $2.03, resulting in a surprise of +8.87% [2] Revenue Analysis - Carpenter's revenue growth reflects a year-over-year increase, with the latest quarter's revenue surpassing the previous year's figures [3] - The company has only topped consensus revenue estimates once in the last four quarters, indicating variability in revenue performance [3] Stock Performance - Carpenter shares have increased by approximately 44.2% since the beginning of the year, significantly outperforming the S&P 500's gain of 13.9% [4] - The future price movement of the stock will depend on management's commentary during the earnings call and the sustainability of earnings expectations [4] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $2.15, with expected revenues of $734.66 million, and for the current fiscal year, the EPS estimate is $9.52 on revenues of $3.11 billion [8] - The estimate revisions trend for Carpenter was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market [7] Industry Context - The Steel - Specialty industry, to which Carpenter belongs, is currently ranked in the bottom 30% of over 250 Zacks industries, which may impact stock performance [9] - The performance of Carpenter's stock may also be influenced by the overall outlook for the industry [9]

October 23, 2025 CARPENTER TECHNOLOGY CORPORATION 1 st Quarter Fiscal Year 2026 Earnings Call © 2025 CRS Holdings, LLC. All rights reserved. Cautionary Statement Forward-looking statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ from those projected, anticipated or implied. The most significant of these uncertaint ...

Core Insights - Carpenter Technology Corporation reported record operating income of $153.3 million for the first quarter of fiscal year 2026, marking a 31% increase year-over-year and surpassing the previous record set in the fourth quarter of fiscal year 2025 [4][5][8] - The Specialty Alloys Operations (SAO) segment achieved an adjusted operating margin of 32.0%, up from 26.3% in the same quarter last year, representing the fifteenth consecutive quarterly margin increase [4][5][34] - Demand in the Aerospace and Defense end-use market accelerated, with bookings increasing 23% sequentially, reflecting a strengthening supply chain and higher build rates [4][5][43] Financial Performance - Net sales for Q1 FY2026 were $733.7 million, a 2% increase from $717.6 million in Q1 FY2025, while net sales excluding surcharge were $603.1 million, up 4% year-over-year [7][43] - Operating income for the quarter was $153.3 million, compared to $113.6 million in the prior year, with earnings per diluted share rising to $2.43 from $1.67 [8][18] - The SAO segment generated $170.7 million in operating income, a 27% increase year-over-year, while the Performance Engineered Products segment reported operating income of $9.4 million [5][24] Cash Flow and Capital Allocation - Cash generated from operating activities was $39.2 million, slightly down from $40.2 million in the same quarter last year, while adjusted free cash flow was negative $3.4 million due to increased capital expenditures related to a brownfield expansion project [9][40] - The company executed $49.1 million in share repurchases during the quarter, with a remaining authorization of $249.0 million under its $400.0 million repurchase program [10][41] Outlook - For the second quarter of fiscal year 2026, the company anticipates operating income between $152 million and $156 million, with a full-year outlook of $660 million to $700 million, representing a 26% to 33% increase over fiscal year 2025 [5][6] - The company is committed to achieving an operating income target of $765 million to $800 million for fiscal year 2027, supported by ongoing market dynamics and capacity expansions [6][10]

Core Insights - Carpenter Technology Corporation (CRS) is set to report its first-quarter fiscal 2026 results on October 23, with sales estimated at $729 million, reflecting a 1.6% increase year-over-year [1][4] - The earnings consensus estimate for CRS is $2.13 per share, indicating a year-over-year growth of 23.1%, with a 1.4% upward revision in the past 60 days [1][4] Earnings Performance - CRS has a history of exceeding Zacks Consensus Estimates, achieving an average surprise of 8.4% over the last four quarters [3][4] - The reported earnings for the last four quarters were $2.21, $1.88, $1.66, and $1.73, with respective surprises of 8.87%, 8.05%, 6.41%, and 10.19% [4] Market Dynamics - The growth in aerospace, defense, and medical applications is expected to positively influence CRS's performance in fiscal 2026 [7] - Increased demand in aerospace submarkets is anticipated as supply chains adapt to rising travel needs [7] Challenges and Mitigating Factors - CRS faces challenges from labor and chip shortages, which may impact performance [8] - However, gains from productivity improvements, higher prices, and an enhanced product mix are expected to offset these challenges [8] Segment Performance Expectations - Specialty Alloys Operations segment sales are projected at $688 million, a 6.6% increase from the previous year, with an operating profit expected to rise to $165 million from $134.5 million [9] - Performance Engineered Products segment net sales are anticipated to grow by 3.3% year-over-year to $104 million, with an operating profit expected to increase to $11.2 million from $7.3 million [10] Stock Performance - CRS shares have appreciated by 55.6% over the past year, significantly outperforming the industry average growth of 25.5% [11]

Core Insights - N-able, Inc. successfully helped CRS Technology Consultants prevent a significant ransomware attack on a regional CPA firm, achieving resolution in under 24 hours without any ransom payment or data loss [1][2][3] Company Overview - N-able, Inc. is a global software company focused on delivering an end-to-end cyber resiliency platform, which includes capabilities for endpoint management, security operations, and data protection [1][6] - The company emphasizes a partner-first approach, combining its products with expert training and peer-led events to empower customers [6] Incident Details - The CPA firm faced a ransomware attack exploiting a known SonicWall vulnerability just days before critical federal tax deadlines [2] - CRS Technology Consultants utilized N-able's cyber resiliency platform to contain and remediate the attack swiftly, allowing the firm to resume operations by lunchtime on the same day [3][4] Response and Recovery - The N-able UEM solution provided real-time alerts as servers began to fail, enabling immediate action to contain the threat [5] - Behavioral AI in N-able's Endpoint Detection and Response solution detected suspicious activity, isolating compromised endpoints to prevent further spread of the attack [5] - Offsite backups via N-able's Cove Data Protection ensured that even destroyed local backups could be restored, maintaining business continuity [5] Strategic Implications - The incident showcased the importance of business resilience, demonstrating that with the right tools and preparation, organizations can recover from ransomware attacks effectively [4] - CRS Technology Consultants has since made N-able's Adlumin MDR a standard service for its clients, enhancing their overall security posture [3]

Core Viewpoint - Carpenter Technology (CRS) shows potential for significant upside based on Wall Street analysts' short-term price targets, with a mean target of $322.5 indicating a 33.2% upside from the current price of $242.17 [1] Price Targets and Estimates - The average price target for CRS ranges from a low of $305.00 to a high of $375.00, with a standard deviation of $35, suggesting a variability in estimates [2] - The lowest estimate indicates a potential increase of 25.9%, while the highest suggests a 54.9% upside [2] - Analysts' agreement is reflected in the standard deviation; a smaller standard deviation indicates greater consensus among analysts [2][9] Analyst Sentiment and Earnings Estimates - Analysts have shown strong agreement in revising earnings estimates upward, which is a positive indicator for potential stock price increases [4][11] - Over the last 30 days, two earnings estimates for CRS have been revised higher, leading to a 0.1% increase in the Zacks Consensus Estimate [12] - CRS holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors [13] Caution on Price Targets - While price targets are a common metric, relying solely on them for investment decisions may not be prudent due to historical inaccuracies [3][7][10] - Analysts may set overly optimistic price targets influenced by business relationships, which can lead to inflated expectations [8]

In the current session, the stock is trading at $254.06, after a 0.81% increase. Over the past month, Carpenter Technology Inc. (NYSE:CRS) stock increased by 4.83%, and in the past year, by 58.13%. With performance like this, long-term shareholders are optimistic but others are more likely to look into the price-to-earnings ratio to see if the stock might be overvalued.Carpenter Technology P/E Compared to CompetitorsThe P/E ratio is used by long-term shareholders to assess the company's market performance a ...

Core Viewpoint - Investors should closely monitor Carpenter Technology Corporation (CRS) stock due to significant movements in the options market, particularly the high implied volatility of the Nov 21, 2025 $190 Put option [1] Group 1: Implied Volatility - Implied volatility indicates the market's expectations for future stock movement, with high levels suggesting potential significant price changes or upcoming events that could lead to a rally or sell-off [2] - The current high implied volatility for Carpenter Technology options may signal a developing trading opportunity, as options traders often seek to sell premium on such options to capture decay [4] Group 2: Analyst Sentiment - Carpenter Technology holds a Zacks Rank 2 (Buy) in the Steel - Specialty industry, which is positioned in the bottom 24% of the Zacks Industry Rank [3] - Over the past 30 days, one analyst has raised the earnings estimate for the current quarter, resulting in an increase of the Zacks Consensus Estimate from $2.13 to $2.14 per share [3]

Group 1 - Carpenter Technology (CRS) has reached a key level of support and recently broke out above the 50-day moving average, indicating a short-term bullish trend [1] - The 50-day simple moving average is a significant indicator for traders and analysts to determine support or resistance levels, and CRS has moved 6.7% higher over the last four weeks [2] - There have been three upward revisions in earnings estimates for the current fiscal year, with no downward revisions, suggesting a bullish uptrend for CRS [3] Group 2 - The consensus earnings estimate for CRS has increased, reinforcing the positive outlook for the company [3] - The combination of earnings estimate revisions and the technical breakout above the 50-day moving average positions CRS as a potential investment opportunity for future gains [3]

Group 1 - TimesSquare Capital Management's "U.S. Mid Cap Growth Strategy" reported a gross return of 13.13% and a net return of 12.91% for Q2 2025, underperforming the Russell Midcap® Growth Index which returned 18.20% [1] - The fund's performance was attributed to double-digit returns in equities driven by improved global economic activity [1] - Carpenter Technology Corporation (NYSE:CRS) was highlighted as a key stock, with a one-month return of 0.61% and a 52-week gain of 52.72%, closing at $241.29 per share with a market capitalization of $12.505 billion [2] Group 2 - Carpenter Technology Corporation specializes in manufacturing engineered metals primarily for aerospace, and is part of a duopoly supplying high-performance alloys for jet engine combustion chambers [3] - The company benefits from a stronger balance sheet and higher margins compared to its competitor, with most revenues linked to spot-market prices allowing for flexible pricing strategies [3] - Despite its potential, Carpenter Technology Corporation is not among the top 30 most popular stocks among hedge funds, with 78 hedge fund portfolios holding its stock at the end of Q2 2025, an increase from 55 in the previous quarter [4]