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STAMFORD, Conn. - Crane Company (NYSE: NYSE:CR), a leading manufacturer of highly engineered industrial products with a market capitalization of $8.9 billion, reported strong financial results for the fourth quarter of 2024, with significant increases in earnings per share (EPS) and sales. According to InvestingPro analysis, the company maintains a "Good" financial health score, though current trading levels suggest the stock may be overvalued relative to its Fair Value. The company also announced a hike in its quarterly dividend and provided an optimistic outlook for 2025.
The company's EPS from continuing operations for Q4 2024 stood at $1.20, marking a 58% increase from the previous year. Adjusted EPS from continuing operations also rose by 58% to $1.26. Sales growth was reported at 12%, reaching $544 million, fueled by an 8% core sales growth. Crane Co. attributes this performance primarily to ongoing strength in its Aerospace & Electronics segment.
Crane Co. also declared a regular dividend for the first quarter of 2025 at $0.23 per share, up 12% from the previous year, and raised the annual dividend to $0.92 per share.
Looking ahead, the company has initiated a full-year 2025 adjusted EPS outlook ranging from $5.30 to $5.60, reflecting a 12% growth at the midpoint compared to the 2024 adjusted EPS. This guidance is based on an estimated total sales growth of approximately 5%, driven by core sales growth of 4% to 6% and an acquisition benefit of roughly 1-2%, offset slightly by a 1% headwind from foreign exchange.
The Aerospace & Electronics segment reported Q4 sales of $237 million, an 11% increase over the prior year, with core sales growth of 7% and a 4% benefit from acquisitions. The Process Flow Technologies segment also saw a 13% increase in sales to $307 million, driven by 9% core sales growth and a 4% benefit from acquisitions.
Crane Co.'s balance sheet remains robust, with a cash balance of $307 million and total debt of $247 million as of December 31, 2024. Following the divestiture of its Engineered Materials segment on January 1, 2025, the company received net proceeds of $208 million.
Max Mitchell, Crane's Chairman, President, and Chief Executive Officer, expressed confidence in the company's momentum and performance as it enters 2025, citing strong demand trends in Aerospace & Electronics and continued outperformance in Process Flow Technologies.
This article is based on a press release statement from Crane Company.
In other recent news, Crane Company has been involved in a series of significant events. The industrial manufacturer recently agreed to sell its Engineered Materials segment to KPS Capital Partners (WA:CPAP) for $227 million, a move in line with Crane's strategy to focus on its core growth platforms. The transaction is expected to close in the first quarter of 2025, subject to regulatory approvals.
In addition to this divestiture, Crane has also completed the acquisition of Technifab Products, Inc., a provider of vacuum insulated pipe systems and cryogenic valves, for $40.5 million. This acquisition is anticipated to enhance Crane's Process Flow Technologies segment by extending its cryogenic capabilities into semiconductor, medical, and pharmaceutical markets.
On the financial front, Crane revised its full-year 2024 earnings guidance, with the updated adjusted earnings per share (EPS) from continuing operations projected to be between $4.71 and $4.86. For the fourth quarter of 2024, the expected adjusted EPS from continuing operations is between $1.10 and $1.25.
Furthermore, Crane reported a robust third-quarter performance, surpassing expectations with an adjusted EPS of $1.38 and a 6% increase in core sales growth. This led the company to raise its full-year adjusted EPS outlook to a range of $5.05-$5.20, indicating a projected 19% growth. These are the recent developments, highlighting Crane's commitment to maximizing shareholder value and sustaining its market leadership.
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