Crane Earnings: Strong Orders and Growing Backlog Drive Improved 2024 Outlook

We’re raising our fair value estimate for narrow-moat-rated Crane to $110 per share from $100 after the company reported strong first-quarter results. We were encouraged to see Crane’s first-quarter core orders and core backlog both increase by 11% from the same period last year. Management raised its outlook for 2024 and now anticipates core sales growth of 4%-6% (up from 3%-5%) and adjusted earnings per share of $4.75-$5.05 (up from $4.55-$4.85). Our fair value estimate increase reflects our more optimistic 2024 revenue growth and operating margin assumptions as well as the time value of money.