Poor Fluid Handling Leads Crane Co. (CR) to a 3Q EPS Miss; UBS Cuts Price Target to $60

UBS maintained a Buy rating on Crane (NYSE: CR), and cut the price target to $60.00 (from $70.00), following the company's 3Q earnings results. Crane reported 3Q15 adjusted EPS of $1.03, missing the consensus estimate of $1.06. The 8% organic decline at Fluid Handling reflected further weakness following LSD declines in 1H15. Given continued delays and deferrals from customers with no signs of improvement, the company pointed to potential LSD-MSD organic declines for Fluid Handling in 2016.

Analyst Shannon O'Callaghan commented, "Crane reported 3Q15 adjusted EPS of $1.03, missing our estimate of $1.05 and consensus of $1.06. The $0.02 miss was driven by a $0.04 miss at the segment level led by Fluid Handling (-$0.04) and Aerospace (-$0.03), partially offset by Engineered Materials (+$0.04). Organic sales declined 3% (vs. our +0.5% estimate) with declines in Fluid Handling (-8% vs. our -5% estimate) and Engineered Materials (-3% vs. our - 2% estimate) while Payment (+2% vs. our +4% estimate) and Aerospace (+3% vs. our +8% estimate) grew in the quarter. Operating margin of 16.1% declined 10bps y/y and was 30bps lower than our 16.4% estimate."

For an analyst ratings summary and ratings history on Crane click here. For more ratings news on Crane click here.

Shares of Crane closed at $52.57 yesterday.

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