Manitowoc Offers Investors Growth at a Discount

Shares of industrial crane powerhouse Manitowoc Co. (MTW) [27.02] have been on a slippery slope ever since rumors of a deal to acquire Enodis surfaced. Following confirmation of the rumors, and an announced deal at $2.4 billion, Manitowoc shares are 47% off of their 52-week high. Despite all this, Manitowoc had been reaffirming guidance throughout the decline… insisting that higher input costs would be offset by surcharges on shipments dated after June 1st. But investors simply never regained confidence in the company.

Manitowoc completely silenced all fears with a record-breaking earnings release on July 28th, 2008. Despite less than stellar showings from industry peers Oshkosh (OSK) [18.77] and Rockwell (ROK) [45.42], Manitowoc managed to blow away consensus estimates of $0.89 with a second quarter showing of $0.99. Earnings were up 37%, lifted by surging oil prices that prompted increased spending on projects requiring Manitowoc cranes. To go along with impressive numbers, MTW raised the midpoint of their full year earnings forecast by $0.10.