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WALTHAM, Mass. - Industrial technology leader Crane NXT, Co. (NYSE: CXT), currently valued at $2.7 billion by market capitalization, has announced the completion of its acquisition of De La Rue Authentication Solutions, a move that broadens its security technology offerings. According to InvestingPro analysis, the company appears undervalued based on its Fair Value assessment. The acquisition is set to enhance Crane NXT’s Security and Authentication Technologies segment by adding government-issued identification and credentials solutions to its portfolio.
Aaron W. Saak, President and CEO of Crane NXT, expressed enthusiasm about the integration of the De La Rue team, highlighting the strategic alignment and the enhanced capabilities to serve their customers. The company has formed a new business unit, Crane Authentication, which will encompass both OpSec Security and De La Rue Authentication Solutions. This restructuring aims to drive value creation through the implementation of the Crane Business System. The company has demonstrated solid financial performance with a 44.7% gross profit margin and annual revenue of $1.49 billion.
Crane NXT anticipates the acquisition to be accretive to its Adjusted EPS in the first full year post-acquisition and expects to achieve double-digit return on invested capital (ROIC) by the fifth year. The company plans to provide updated full-year guidance during its first-quarter earnings release on May 7, 2025. InvestingPro data shows analysts are projecting EPS of $4.22 for FY2025, though 3 analysts have recently revised their earnings expectations downward. Get deeper insights and access to comprehensive financial analysis with InvestingPro’s detailed research reports, available for over 1,400 US stocks.
Employing approximately 5,000 people worldwide, Crane NXT is committed to securing high-value physical products, sophisticated detection equipment, and proprietary services that protect brand identity and digital content. The acquisition is seen as a step forward in bolstering the company’s position as a trusted partner in the industry.
The press release also contained forward-looking statements regarding the company’s expectations, which are subject to risks and uncertainties that could cause actual results to differ materially. The company disclaims any obligation to revise or update these statements and advises investors not to place undue reliance on forward-looking statements. These risks include, but are not limited to, global economic conditions, demand variability, operational challenges, and regulatory compliance.
This news is based on a press release statement from Crane NXT, Co.
In other recent news, Crane NXT reported its fourth-quarter earnings, slightly surpassing expectations with adjusted earnings per share of $1.20, compared to the analyst estimate of $1.19. However, the company’s revenue of $399 million fell short of the anticipated $405.62 million. For 2025, Crane NXT projected adjusted earnings per share between $4.00 and $4.30, which is below the $4.39 that analysts had expected. DA Davidson reaffirmed a Buy rating on Crane NXT, setting a price target of $100, highlighting the company’s strategic positioning and plans for significant earnings growth by 2026. The firm emphasized Crane NXT’s financial health and potential for mergers and acquisitions. Baird analysts raised their price target for Crane NXT to $85 from $76, maintaining an Outperform rating. They noted the company’s prospects despite some initial challenges in 2025 due to equipment upgrades and CPI timing. Both DA Davidson and Baird pointed to Crane NXT’s differentiated earnings potential and strategic growth opportunities.
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