Construction equipment company Astec (NASDAQ:ASTE) will be announcing earnings results this Wednesday before the bell. Here’s what investors should know.
Astec beat analysts’ revenue expectations by 2.8% last quarter, reporting revenues of $329.4 million, up 6.5% year on year. It was a stunning quarter for the company, with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Is Astec a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Astec’s revenue to grow 2.5% year on year to $354.2 million, a reversal from the 1.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.56 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Astec has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Astec’s peers in the heavy machinery segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Terex delivered year-on-year revenue growth of 7.6%, beating analysts’ expectations by 3.4%, and Lindsay reported revenues up 21.7%, topping estimates by 4.6%. Terex traded down 1.8% following the results while Lindsay was up 3.9%.
Read our full analysis of Terex’s results here and Lindsay’s results here.
Investors in the heavy machinery segment have had steady hands going into earnings, with share prices up 1.4% on average over the last month. Astec is down 4.8% during the same time and is heading into earnings with an average analyst price target of $43 (compared to the current share price of $39.55).
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