Carpenter Technology (CRS) shares fell 22.2% on Thursday after fiscal Q1 2027 earnings of $3.25 per share beat the $3.04 forecast, but sales of $798.5 million missed the $830.8 million forecast. Revenue still rose 28% year over year to a company record, and bookings for future shipments in aerospace and distribution grew 49%. However, the company generated no free cash flow and burned nearly $25 million on higher capital spending for a brownfield factory expansion, despite $162.5 million in GAAP net profit. The article notes the stock trades at 32x trailing earnings with a PEG ratio of 1.5, against expected long-term earnings growth of 21.5%, suggesting it may be overpriced.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
earningsvaluationcapital expenditureCarpenter Technology
Open a keyword to see other news on the same topic.
Related news
- From Search Destruction to Efficiency, I Have Faith in Alphabet’s Abilities
The author remains confident in Alphabet, as Search & other revenue reached $63.27 billion in Q2 2026, up 17%, and Google Cloud grew 82% to $24.77 billion. Operating margin reached 34%, and the stock is valued at about 15 times earnings, while the company spent $44.92 billion on capex in a single quarter. The biggest risk, in the author's view, is capex: Alphabet guided to $175 billion to $185 billion for 2026, Q2 free cash flow was negative $5.86 billion, long-term debt rose from $46.5 billion to $98.2 billion, and buybacks were suspended. Q2 operating cash flow reached $39.07 billion, and the author sets aside a $99.03 billion unrealized gain that lifted reported net income. The author will track whether the backlog of over $460 billion turns into revenue and whether the spending produces returns.
- Tesla target lowered by analysts worried about runaway $25 billion spending
- Meta Just Burned Cash for the First Time Since Its IPO
Meta posted negative free cash flow of $2.12 billion in Q3 as capex of $34.91 billion, including finance-lease principal, exceeded its $32.79 billion in operating cash, the first negative quarter since 2012. Revenue rose 26% to $64.60 billion, above expectations of about $63.3 billion, but operating margin fell to 20% from 40% due to a $9.89 billion charge tied to an agreement with 52 state attorneys general over teen mental health. Long-term debt rose to $80.92 billion from $58.74 billion at the end of 2025, and Meta made no buybacks in the quarter versus $3.33 billion a year earlier. Meta narrowed its 2026 capex forecast to $135–145 billion and guided Q4 revenue to $73–76 billion, while its 2027 budget is still being developed. The article says the Q4 2026 report, expected in late January 2027, will be a key test, and a second negative free cash flow quarter or revenue below $73 billion would weaken the bullish case.
- Meta's AI build-out comes with an $825 billion price tag
Meta Platforms (META) announced plans for a 2-for-1 stock split to help fund its AI capital expenditure. Shares slid in pre-market trading on Thursday after the company reported third-quarter earnings the previous day. The 8:30 hosts examined Meta's commitments of $825 billion for its AI infrastructure build-out.
- TSLA Q3 Earnings Beat on Auto Margin Gains, '26 Capex View Cut
Tesla reported adjusted Q3 2026 earnings of 48 cents per share, beating the Zacks consensus of 45 cents but down from 50 cents a year earlier, with revenue of $28.05 billion roughly flat versus $28.1 billion. Deliveries fell 2% to 486,532 vehicles, yet automotive gross margin improved to 18.5% and services and other revenue rose 33% to $4.61 billion. Active paid FSD customers climbed 67% to 1.74 million, while energy revenue fell 16% to $2.88 billion despite 13.7 GWh of storage deployments. Operating income dropped 56% to $718 million as operating expenses rose 39%, and free cash flow fell 62% to $1.53 billion as capex increased to $4.73 billion. Management trimmed its 2026 capex outlook to about $20 billion from $25 billion.
- Tesla Cuts 2026 Capex to $20 Billion, but Q4 Could Still Be Its Biggest Spending Quarter Since 2023
Tesla lowered its 2026 capex forecast to $20 billion, leaving about $6.99 billion for the fourth quarter, compared with roughly $11.99 billion under the old guidance. In the third quarter, Tesla spent $4.73 billion on capex, below the about $7.5 billion analysts expected; Reuters figures show lower spending explains about 43% of the free cash flow beat. Operating cash flow was $6.26 billion, including $2.59 billion from working capital, an inflow that can reverse when those bills come due. Management said capex will keep expanding over the next few years, while Tesla ended September with $45.45 billion in cash and investments.
Related markets
Latest news
- SpaceX Says It’s on Pace to Bring 200,000 Nvidia Chips Online a Month. Here’s Why Jensen Huang Calls GPU-Backed Loans “the Big Idea”
Nvidia (NVDA) closed at $221.97 on October 21, up 2.54%, a day after SpaceX said on its earnings call it expects to bring about 200,000 Nvidia GB300s online each month for the rest of the year. According to the Financial Times, SpaceX is seeking about $40 billion in loans and investment-grade debt to buy the chips, with Apollo expected to lead; a source told CNBC the deal would likely use the GPUs as collateral, though Bloomberg reports talks are early and could fail. Nvidia is both a supplier and a SpaceX shareholder, with a stake worth about $21 billion at the end of June. The article's main risk is financing: if rental rates fall, collateral value falls too, and Nvidia's free cash flow dropped to $21.40 billion in the July quarter from $48.59 billion the prior quarter.
- a16z Drops Crypto From Its Name, Widens Bets to AI and Frontier Tech
Andreessen Horowitz is renaming its crypto fund “a16z Frontier” and widening its mandate to AI and other long-horizon technologies, according to an email to newsletter subscribers. The firm says it will keep investing in crypto and advocating for sensible crypto regulation. Chris Dixon argues blockchains have faded into the background of products from Wall Street and fintech firms, so companies should be defined by what they do rather than the technology they use. He expects new “native use cases” to emerge, and sees crypto as a way for AI agents to pay each other. The new fund will be led by Dixon with Marc Andreessen, Ben Horowitz, Eddy Lazzarin and Guy Wuollet; the post gives no size for it, and the latest figure on record is the $2.2 billion announced in May.
- Dell Unveiled New AI Servers a Week After Barclays’ Downgrade. Here’s Where the Stock Could Go by 2031
Dell unveiled new AI Factory servers with NVIDIA at GTC Berlin on October 21, one week after Barclays downgraded the stock and cut its target to $574 from $603. Shares closed at $485.88, still below the $572.47 close of October 13. Barclays argues strong revenue mainly reflects memory costs passed on to customers, while CFO David Kennedy says new dense systems can replace 5 or 6 of those existing servers and supply will be tighter in 2027. Traditional servers and networking revenue rose 122% to $10.5 billion in the fiscal second quarter, and the AI server backlog stood at $95 billion as of July 31. TIKR's mid-case scenario puts the stock near $750 by January 31, 2031, about 54% higher, while Dell reports fiscal third-quarter results after the close on November 24.
- Elon Musk invests $1bn in CNN-owner Skydance
Elon Musk reportedly invested $1bn in Skydance, the newly formed company created through Paramount's $110bn takeover of Warner Bros, which owns CNN and CBS News, according to Semafor. Skydance carries net debt of roughly $80bn and is targeting $6bn in cost savings. The article says the investment repays a favour to Larry Ellison, who backed Musk's $1bn Twitter takeover in 2022. While the cash may ease pressure on Skydance's balance sheet, it could also fuel concerns about a right-wing media empire, as unions have accused CBS of editorial interference.
- Winklevoss PAC moves into Texas Senate race with $81K ad buy
Digital Freedom Fund, a super PAC launched in 2025 by Gemini co-founders Cameron and Tyler Winklevoss, spent more than $81,000 on direct mail backing Republican Ken Paxton and opposing Democrat James Talarico in the Texas Senate race. The PAC also spent in Ohio, bringing its support for Republican Jon Husted to about $7 million, and reported raising about $34 million as of Sept. 30. Prediction markets Kalshi and Polymarket heavily favored Democrats retaking the House and Senate in 2027, a result that would significantly affect the chances of passing the Digital Asset Market Clarity Act. Paxton had earlier benefited from $500,000 in ads funded by Fellowship PAC, which went through Nxum Group, co-founded by former Trump crypto adviser Bo Hines, and Nxum reportedly received $6.3 million in a deal with Tether.
- Why HubSpot Stock Rallied Today
HubSpot shares jumped as much as 7% on Thursday amid speculation about software sector M&A. Earlier this week Salesforce agreed to acquire Braze for $5.66 billion at a 58% premium, and the prior week CCC Intelligent Solutions and Varonis Systems agreed to deals at 44% and 52% premiums. Jefferies analyst Samad Samana sees the Braze deal as a possible spark for a takeover of Klaviyo and considers HubSpot an attractive private equity candidate, though he views a direct acquisition as unlikely. The article estimates a HubSpot deal, given its market cap above $13 billion and an average 51% premium, could cost around $20 billion, but stresses this is speculation.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.