Carpenter Technology Gears up to Report Q1 Earnings: What's in Store?

Core Viewpoint - Carpenter Technology Corporation (CRS) is expected to report first-quarter fiscal 2025 results on October 24, with projected revenues of $708.2 million, reflecting an 8.6% year-over-year growth, and earnings estimated at $1.57 per share, indicating a significant 78.4% increase from the previous year [1]. Financial Estimates - The Zacks Consensus Estimate for CRS's fiscal first-quarter revenues is $708.2 million, showing an 8.6% growth from the prior year [1]. - The earnings estimate for the first quarter is $1.57 per share, which has decreased by 1% over the past 60 days but still represents a 78.4% year-over-year increase [1]. - The current earnings estimates for fiscal 2025 are $6.63 for F1 and $7.39 for F2, with no changes in the last 60 days [2]. Earnings Surprise History - Carpenter Technology has a history of beating earnings estimates, with an average surprise of 15.9% over the last four quarters [3]. - The reported earnings for the last four quarters were consistently above estimates, with the most recent quarter showing a surprise of 19.74% [3]. Earnings Prediction Model - The current model does not predict an earnings beat for CRS, as the Earnings ESP is 0.00% despite a Zacks Rank of 1 (Strong Buy) [4][5]. Performance Factors - Growth in end-use markets, particularly in aerospace, defense, and medical applications, is expected to positively impact CRS's performance in fiscal 2025 [6]. - Demand in aerospace submarkets is anticipated to increase due to rising travel demand, although labor and chip shortages may pose challenges [6]. - Increased productivity, higher prices, and improved product mix are expected to mitigate some of the negative impacts on margins [6]. Segment Performance Expectations - Specialty Alloys Operations segment sales are projected to be $618 million, an 8.4% increase from the previous year, with an expected operating profit of $131.7 million [7]. - Performance Engineered Products segment net sales are estimated to rise by 6.1% year-over-year to $108 million, with an operating profit of $10.6 million [7]. Stock Performance - Carpenter Technology shares have outperformed the industry, gaining 161.5% over the past year compared to the industry's 77.5% growth [8].