Crane (NYSE:CR) Outperforms Q4 Estimates with Revenue and Earnings Growth
Financial Performance
Crane reported fourth-quarter 2024 (CY2024) revenue of $544.1 million, exceeding analyst expectations by 2%. Adjusted earnings per share (EPS) came in at $1.26, surpassing estimates by 4.3%. Non-GAAP profit was $1.26 per share, 4.3% above consensus. Adjusted EBITDA reached $107.9 million, in line with expectations.
Key Highlights
* Organic revenue growth of 8% on a year-over-year basis
* Adjusted operating margin rose to 15.8% from 12.6% in Q4 CY2023
* Free cash flow margin improved to 34.6% from 27.5% in the prior-year quarter
Growth Outlook
Analysts forecast revenue growth of 6.1% over the next 12 months, driven by newer products and services. However, this estimate remains below the sector average.
Operational Efficiency
Crane has demonstrated strong cost management, with its operating margin rising by 8.2 percentage points over the past five years. In Q4 CY2024, its operating margin reached 15.8%, a 3.3-percentage-point increase year-on-year.
Earnings per Share (EPS)
Over the past five years, Crane's EPS declined at an annual rate of 4.2%. However, in Q4 CY2024, EPS increased to $1.26, surpassing consensus estimates by 4.3%. Analysts expect full-year EPS in 2025 to reach $4.86, representing a 14.3% growth.
Overall Performance
While Crane exceeded revenue and EPS estimates in Q4 CY2024, its full-year EPS guidance slightly missed expectations. The market reacted positively to the results, with the stock rising 3.4%. However, investors should consider long-term business quality and valuation before making investment decisions.