Oct. 27, 2014, 5:22 PM
Oct. 27, 2014, 12:24 PM
- Caterpillar (CAT -1.5%) climbed 4.6% last week after its Q3 earnings easily beat Wall Street consensus, but Raymond James analyst Theoni Pilarinos thinks this is not the time for investors to chase the stock.
- CAT deserves credit for right-sizing inventory, bringing production levels in-line with demand, maintaining a solid balance sheet and generating strong cash flow funding $5.4B YTD in share buyback and dividends, but management's forecast for flat 2015 sales growth prompts the firm to lower its numbers accordingly, and Pilarinos believes the stock will be range-bound until end markets improve.
- AMong other big machinery makers: JOY -3.4%, MTW -1.7%, DE -0.8%.
Oct. 26, 2014, 5:35 PM
Oct. 21, 2014, 5:02 PM
Oct. 10, 2014, 2:22 PM
- Manitowoc (MTW -12.1%) shares rack up big losses after guiding Q3 revenues lower and analysts swoop in with downgrades and reduced stock price targets.
- BMO downgrades MTW to Underperform from Market Perform with a $24 price target, down from $24, believing the weakness in the crane segment likely will persist into H1 2015 and seeing no catalyst over the next 3-6 months to drive shares or forecasts higher.
- BB&T cuts shares to Hold from Buy and lowers its FY 2014 and 2015 earnings estimates to reflect the slower than expected recovery in cranes and additional setbacks within the food service segment amid several challenges both domestically and abroad (Briefing.com).
Oct. 10, 2014, 9:07 AM
Oct. 10, 2014, 7:43 AM
- Manitowoc (NYSE:MTW) -6.1% premarket after issuing downside guidance for Q3 revenues, saying results remain challenged by a constrained demand environment globally.
- Q3 EBITDA is forecast at ~$90M, vs. $112.4M in Q3 2013.
- For FY 2014, MTW now expects revenues in its crane segment to decline by mid-to-high single-digit percentages Y/Y, while crane operating margins are seen at ~7%.
- MTW sees FY 2014 food service segment revenues rising by low-to-mid single-digit percentages, with operating margins ~15%.
- BMO Capital downgrades shares to Underperform from Market Perform.
Oct. 1, 2014, 2:00 PM
- Activist investor Relational Investors "plans to wind down its operations and dissolve its current funds by the end of next year," the WSJ reports. A new fund with the same name is expected to be be eventually launched, but founders Ralph Whitworth and David Batchelder "will cede day-to-day control."
- The report comes after Whitworth took a leave of absence in July to focus on his health. Relational has $6B in assets under management.
- Many of the companies Relational holds positions in have added to their Wedenesday losses following the report: MHR -6.8%. CLH -5.9%. MTW -4.3%. SPW -3.7%. BEAV -3.5%. TKR -3%. HOLX -2.8%. PMCS -3.6%.
Sep. 19, 2014, 2:28 PM
- Caterpillar (CAT -1.7%) says worldwide machinery sales by its dealers fell 10% for the three-month period ended in August, marked by a 29% plunge in Latin America sales; global sales had dropped 9% in the May-July period and 10% in April-June.
- North America was the only region where sales were up in the latest rolling period as sales rose 8%, but that was down from 11% growth in July and a 14% rise in June.
- CAT's worldwide mining equipment sales fell 33% Y/Y, while construction equipment sales fell 1%; a 12% sales increase in its North America construction division was offset by a 23% drop in Latin America and a 10% decline in Asia/Pacific.
- The lone bright spot was a 4% sales increase in its energy and transportation equipment division.
- Mining equipment peers also are weak in today's trade: JOY -2%, MTW -3.7%, TEX -1%.
Jul. 31, 2014, 9:11 AM
Jul. 30, 2014, 5:15 PM
Jun. 30, 2014, 9:15 AM
- Price targets of Manitowoc (MTW) shares are on the rise, after receiving higher estimates the last few days. Credit Suisse this morning upped the price target of Manitowoc from $34 to $39, despite missing Q1 EPS and revenue in May.
- Jefferies on Friday upgraded MTW shares from "underperform" to a "hold" rating, and raised the stock price target to $33 from $24.
- MTW +0.5% premarket
Jun. 27, 2014, 2:58 PM
- Manitowoc (MTW +11.2%) says it will consider Relational Investors' proposal to spin off its food service business from its industrial business, in response to last night's news that the activist fund had amassed an 8.5% stake and believes a breakup would enhance capital allocation and strategic flexibility.
- MTW likely will focus on improving its operational efficiencies in cranes and food service while it assesses the longer-term merits of a potential spinoff, a William Blair analyst says, adding that "the activist investors are dug in, and the process could take some time.”
- Jefferies upgrades MTW shares to Hold from Underweight, believing the entry of an activist places a floor on the shares, but BMO cuts shares to Market Perform from Outperform, noting MTW is incorporated in Wisconsin, which has strong anti-takeover provisions and would make it difficult for Relational to acquire 10% or more of the company without the approval of the board and management (Briefing.com).
Jun. 27, 2014, 9:19 AM
Jun. 26, 2014, 5:58 PM
- Relational Investors confirms via a 13D filing that it owns an 8.52% active stake in Manitowoc (MTW), and urges a spinoff of the company's food business (earlier).
- Relational says the market significantly undervalues MTW due to its combination of the two businesses, and that a spinoff of the food business from the crane business would maximize shareholder value; it says it met with MTW management in January to outline its suggestions, but the Board has declined a request for a meeting.
- MTW +11.8% AH.
Jun. 26, 2014, 5:34 PM
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