Hardware

Crane NXT boosts Q3, FY 2023 sales, surpasses expectations

Image: Crane NXT

February 15, 2024

Crane NXT boosted its Q4 and FY sales and surpassed analysts' expectations. Highlights from an earnings report include:

• Net sales rose 5.5% from $338.2 million in Q3 2022 to $356.9 million in the quarter ending Dec. 31, 2023. The sales increase was comprised of core sales growth of $14 million, or 4.1%, and favorable foreign exchange of $4.7 million, or 1.4%.
• Fourth quarter 2023 GAAP EPS was 86 cents while and adjusted EPS was 99 cents.
• Payment innovation sales fell 6.9% from $231.1 million to $215.1 million, driven by a 7.3% decline in core sales as favorable pricing was more than offset by lower volumes as customers adjusted inventory levels to reflect reduced lead times.
• Crane currency sales rose 32.4% from $107.1 million to $141.8 million, driven by 29% core sales growth related to higher international sales and favorable foreign exchange.
• Full year 2023 sales rose 3.8% from $1.33 billion to $1.39 billion. The sales increase was comprised of core sales growth of $57.5 million, or 4.3%, partially offset by unfavorable foreign exchange of $6.1 million, or 0.5%.
• Full year 2023 GAAP EPS was $3.28 while adjusted EPS was $4.16.

The company announced a quarterly dividend of 16 cents per share, payable March 13, 2024 for shareholders of record as of Feb. 29, 2024.

Shares traded at $58.99 today against a 52-week range of $36.31 to $63.3.

The $356.9 million in quarterly revenue beat analyst expectations by $15.48 million while the non-GAAP EPS of 99 cents beat expectations by 6 cents, according to Seeking Alpha.

"We achieved adjusted EPS of $4.16, exceeding the high end of our guidance, as well as generating 4% growth in core sales, and expanding our adjusted segment operating margins by 30 basis points year over year," Aaron Saak, president and CEO, said in the press release.

For 2024, the company expects sales growth of -1% to 2% and adjusted EPS of $4.10 to $4.35.