On Tuesday, Crane Co. (NYSE:CR), a diversified manufacturer of industrial products, retained its Neutral rating and $120.00 stock price target from UBS. The company's first-quarter results were seen in a positive light due to an 11% growth in orders. This growth is considered a favorable sign, indicating that management's trend of raising guidance might persist throughout the year.
Crane's Process Flow Technologies (PFT) segment reported a 9% increase in organic orders, suggesting an uptick in short cycle demand and sustained project activity. Despite this, the segment experienced a 2% year-over-year decline in sales for the quarter, with the press release pointing out continued challenges in the European Chemical markets.
Meanwhile, the Aerospace & Electronics (A&E) segment saw a robust 20% growth in organic sales, with both original equipment (OE) and aftermarket (AM) sales rising by double digits. The segment's margins improved significantly, with a 150 basis point year-over-year increase to 22.4%.
In addition to its quarterly performance, Crane announced the acquisition of Cryoworks, a deal valued at $61 million, which is approximately 12 times trailing twelve months (TTM) EBITDA. Cryoworks specializes in cryogenic technology and hydrogen applications, enhancing Crane's capabilities in these areas. The acquisition is projected to be accretive to Crane's earnings per share (EPS) by approximately $0.10 by the year 2028.
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