Carpenter Technology to Report Q1 Earnings: What's in the Offing?

Carpenter Technology Corporation CRS is scheduled to report first-quarter fiscal 2026 results on Oct. 23, before the opening bell.

The Zacks Consensus Estimate for CRS’s sales is pegged at $729 million, indicating a 1.6% rise from the year-ago reported figure.

The consensus estimate for Carpenter Technology’s earnings is pegged at $2.13 per share. The Zacks Consensus Estimate for CRS’s earnings has moved up 1.4% in the past 60 days. The estimate indicates year-over-year growth of 23.1%.

CRS’s Solid Earnings Surprise History

Carpenter Technology’s earnings beat the Zacks Consensus Estimates in the trailing four quarters, the average surprise being 8.4%.

What the Zacks Model Unveils for Carpenter Technology

Our proven model does not conclusively predict an earnings beat for CRS this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here, as you can see below.

You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Earnings ESP: Carpenter Technology has an Earnings ESP of -0.24%.

Zacks Rank: CRS currently has a Zacks Rank of 3.

Factors Likely to Have Shaped Up CRS’s Q1 Performance

Carpenter Technology has been witnessing growth across its end-use markets, especially in aerospace, defense and medical applications, which is anticipated to continue throughout fiscal 2026 and get reflected in the first-quarter fiscal 2026 results. In the quarter, demand is expected to have accelerated across all aerospace submarkets as the supply chain ramped up to meet increasing travel demand.

However, the company has been bearing the brunt of labor and chip shortages, which are likely to have affected its performance.

Nonetheless, gains from increased productivity across Carpenter Technology’s facilities, higher prices, an improved product mix and increased volumes are expected to have negated these headwinds. The impacts of these are likely to get reflected in the company’s margin results.

We expect the Specialty Alloys Operations segment’s sales to be $688 million in the quarter, indicating a rise of 6.6% from the year-ago quarter’s reported figure. Our model estimates the segment to sell 47,377 pounds in the first quarter of fiscal 2026 indicating a dip of 5.4% from that reported in the first quarter of fiscal 2025. We expect the operating profit to be $165 million, indicating growth from the $134.5 million reported in first-quarter fiscal 2025.

We expect Performance Engineered Products’ net sales to rise 3.3% year over year to $104 million. Our model predicts the segment to sell 2,673 pounds in the quarter, indicating a rise of 1.5%. Our estimate for the segment’s operating profit is $11.2 million. The segment reported an operating profit of $7.3 million in the year-ago quarter.

Carpenter Technology Stock’s Price Performance

CRS shares have gained 55.6% in the past year compared with the industry’s 25.5% growth.

Stocks to Consider

Here are some Basic Materials stocks, which, according to our model, have the right combination of elements to post an earnings beat in their upcoming releases.

Agnico Eagle Mines Limited AEM, scheduled to release third-quarter earnings on Oct. 29, has an Earnings ESP of +16.07% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Agnico Eagle Mines’ earnings for the third quarter are pegged at $1.68 per share, indicating a year-over-year jump of 47.4%. Agnico Eagle Mines has a trailing four-quarter average earnings surprise of 10%.

Pan American Silver Corp. PAAS, slated to release third-quarter 2025 earnings on Nov. 12, has an Earnings ESP of +2.27% and carries a Zacks Rank of 3 at present. 

The Zacks Consensus Estimate for Pan American Silver’s earnings for the third quarter is pegged at 51 cents per share. The estimate indicates a significant climb from earnings of 32 cents per share reported in the year-ago quarter. Pan American Silver has a trailing four-quarter average earnings surprise of 45.2%.

CSW Industrials, Inc. CSW, slated to release second-quarter fiscal 2026 earnings soon, has an Earnings ESP of +1.10% and a Zacks Rank of 3 at present.

The consensus mark for CSW Industrials’ earnings is pegged at $2.73 per share. It indicates a year-over-year rise of 20.8%. CSW Industrials has a trailing four-quarter average earnings surprise of 5.6%.

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This article originally published on Zacks Investment Research (zacks.com).

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