Carpenter Technology Expands Footprint in 3D Printing Market

Carpenter Technology Corporation CRS has entered into an agreement with Desktop Metal, Inc., to supply over 20 CarTech alloy grades, which will be used in the latter's end-to-end metal 3D printing systems. The move fortifies Carpenter Technology's position as a leading global producer of powder metals and specialty wire for additive manufacturing.

Carpenter Technology revealed that the powders will be used in premium materials cartridges. The deal will help both companies to leverage combined capabilities and bring improved value to the fast-growing 3D printing market.

The company's stellar reputation in terms of technical expertise, superior material quality and market diversity is expected to help customers succeed in the 3D printing market. 

Carpenter Technology's shares fell roughly 2.5% in the last three months, outperforming the Zacks categorized Steel-Speciality industry's decline of 3.9%.

Carpenter Technology delivered a strong performance in the third quarter of fiscal 2017 (ended Mar 31, 2017), on the back of improving market conditions and continuing execution of Carpenter Operating Model which delivered additional efficiency gains. The company also witnessed improved demand in the aerospace market.

As activity levels continue to improve in North America, the company expects to capitalize on the market for growth. It also remains on track with the integration of the titanium powder buyout, and its new titanium powder applications and capabilities are gaining traction in several of its end-use markets.  

Moving ahead, the company remains focused on improving operations and leveraging on improved demand across end-use markets, and increasing prospects in the additive manufacturing space. Carpenter Technology also noted that backlogs are growing as it leverages on solution-driven approach to expand market opportunities and customer base. Overall, the company is well positioned to enhance profitability on the back of accelerated revenues growth.

Carpenter Technology Corporation Price and Consensus

 

Carpenter Technology Corporation Price and Consensus | Carpenter Technology Corporation Quote

Carpenter Technology currently carries a Zacks Rank #3 (Hold).

Stocks to Consider

Some better-ranked companies in the basic materials space include The Sherwin-Williams Company SHW, Potash Corporation of Saskatchewan Inc. POT and Huntsman Corporation HUN. All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 stocks here.

Sherwin-Williams has expected long-term earnings growth rate of 11.4%.

Potash Corporation has expected long-term earnings growth rate of 6.5%.

Huntsman has expected long-term earnings growth rate of 7%.

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