Construction equipment company Astec (NASDAQ: ASTE) will be announcing earnings results this Wednesday before market open. Here’s what to expect.
Astec missed analysts’ revenue expectations by 6.7% last quarter, reporting revenues of $330.3 million, down 4.4% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Is Astec a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Astec’s revenue to grow 13.6% year on year to $330.9 million, a reversal from the 3.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.38 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Astec has only missed Wall Street’s revenue estimates once since going public and has exceeded top-line expectations by -2% on average.
Looking at Astec’s peers in the heavy machinery segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Caterpillar delivered year-on-year revenue growth of 9.5%, beating analysts’ expectations by 6.1%, and Terex reported revenues up 14.3%, falling short of estimates by 2%. Caterpillar traded up 11.2% following the results while Terex was down 17.8%.
Read our full analysis of Caterpillar’s results here and Terex’s results here.
Investors in the heavy machinery segment have had steady hands going into earnings, with share prices flat over the last month. Astec is down 3.5% during the same time and is heading into earnings with an average analyst price target of $54.50 (compared to the current share price of $46.81).
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