Crane Co. CR surprised its investors with better-than-expected results for first-quarter 2016, with earnings of 93 cents per share surpassing the Zacks Consensus Estimate of 87 cents. However, the bottom line came in line with the year-ago tally.Crane Company - Earnings Surprise | FindTheBest In the quarter, Crane’s net sales totaled $660 million, beating the Zacks Consensus Estimate of $653 million by 1.1%. However, the top-line declined 2.8% year over year due to roughly 1% fall in core sales and 2% negative impact of foreign currency movements.At the quarter-end, total order backlog was $758.6 million, down 9.4% year over year.Segmental DetailsCrane generates revenues under four heads, results of which are briefly discussed below.Revenues from the Aerospace & Electronics segment were $171.7 million, up 6.3% year over year. Order backlog was $418.7 million, down 4.1% sequentially.The Payment & Merchandising Technologies segment generated revenues of $172 million, roughly flat year over year. Order backlog was $60.4 million, down 3.5% sequentially.The Engineered Materials segment’s revenues were $68.3 million, down 2% year over year. Order backlog for the segment increased 5.3% sequentially to $16 million.Revenues from the Fluid Handling segment decreased 10% year over year to $248 million. Order backlog was $263.4 million, down 1.4% sequentially.MarginsIn the quarter, Crane’s cost of goods sold decreased 3.2% year over year, and, as a percentage of revenues, came in at 64.6% versus 64.8% in the prior-year quarter. Gross margin inched up 20 basis points (bps) to 35.4% Selling, general and administrative (SG&A) expenses, as a percentage of revenues, were 22.5% as against 21.8% recorded in the year-ago quarter.Adjusted operating margin from continuing operations declined 30 basis points (bps) year over year to 13%.Balance Sheet and Cash FlowExiting first-quarter 2016, Crane had cash and cash equivalents of $354 million, down compared with $363.5 million recorded in the previous quarter. Long-term debt edged down 0.6% sequentially to $744.8 million.In the quarter, Crane used approximately $20 million cash for its operating activities, above $11.6 million used in the year-ago quarter. Capital expenditure grew 7.8% year over year $11 million; while approximately $19.2 million were paid as dividends to shareholders.Concurrent with the earnings release, Crane announced that its board of directors has approved the payment of a quarterly dividend of 33 cents per share. The dividend will be paid on Jun 10, 2016 to shareholders of record as on May 31.OutlookFor 2016, Crane reaffirmed its earnings guidance, ranging within $3.85−$4.15 per share, roughly flat to down 7% from adjusted earnings of 2015. Sales are forecasted to be $2.7 billion, while core sales will be down 1.5% to up 1.5% year over year. Adverse foreign currency movements will likely hurt the top line by 2%.Cash from operating activities is projected in a range of $240−$270 million, while capital spending is likely to be $50 million. Free cash flow is anticipated within $190−$220 million.With a market capitalization of $3.3 billion, Crane currently carries a Zacks Rank #2 (Buy). Similarly-ranked stocks in the industry include 3M Company MMM, Carlisle Companies Incorporated CSL and CLARCOR Inc. CLC.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report 3M CO (MMM): Free Stock Analysis Report CLARCOR INC (CLC): Free Stock Analysis Report CARLISLE COS IN (CSL): Free Stock Analysis Report CRANE CO (CR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research