Report
Andrew Lane
EUR 147.86 For Business Accounts Only

Carpenter Reports Dismal 1Q Results, but Still Offers Attractive Long-Term Return Potential

Carpenter Technology shares plummeted on Oct. 27 after the company reported disappointing results for the first quarter of fiscal 2017. The quarter marked an end to four consecutive quarters of year-on-year margin expansion and six consecutive quarters of positive free cash flow. Both volumes and margins fell well short of our expectations. In response, we've lowered both our near-term and long-term profit forecasts. Our midcycle operating margin forecast is now 11%, down from 13%. Our fair valu...
Underlying
Carpenter Technology Corporation

Carpenter Technology is a producer and distributor of alloys, including titanium alloys, powder metals, stainless steels, alloy steels, and tool steels as well as drilling tools. The company's alloy-based materials and process solutions are used for applications in the aerospace, defense, transportation, energy, medical, industrial and consumer markets as well as additive manufacturing processes and soft magnetics applications. The company also produces metal powders and parts. The company has two business segments: Specialty Alloys Operations, which consists of the company's alloy and stainless steel manufacturing operations; and Performance Engineered Products, which consists of the company's differentiated operations.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Andrew Lane

Other Reports on these Companies
Other Reports from Morningstar

ResearchPool Subscriptions

Get the most out of your insights

Get in touch