Carpenter Technology expects FY2027 operating income between $850 mln and $880 mln
Company expects FY2027 adjusted free cash flow of $400 mln to $430 mln
Carpenter Technology sets FY2029 operating income target at $1.2 bln to $1.3 bln
Result drivers
SAO SEGMENT PERFORMANCE - Record operating income and margin expansion in the Specialty Alloys Operations segment, driven by productivity gains, pricing realization, and improved product mix
HIGHER SHIPMENT VOLUME - Q4 net sales rose 13% yr/yr on 22% higher shipment volume
AEROSPACE AND DEFENSE DEMAND - Net sales excluding surcharge in Aerospace and Defense end-use market rose 15% yr/yr
Analyst coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the iron & steel peer group is "buy"
Wall Street's median 12-month price target for Carpenter Technology Corp is $466.00, about 12.2% below its July 29 closing price of $530.62
The stock recently traded at 41 times the next 12-month earnings vs. a P/E of 34 three months ago
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