Construction equipment company Astec (NASDAQ: ASTE) will be announcing earnings results tomorrow before market open. Here’s what to look for.
Astec beat analysts’ revenue expectations by 4% last quarter, reporting revenues of $345.5 million, down 1.3% year on year. It was a satisfactory quarter for the company, with a decent beat of analysts’ EBITDA estimates but a miss of analysts’ earnings 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 3.2% year on year to $312.9 million, a reversal from the 3.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.31 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 three times over the last two years.
Looking at Astec’s peers in the construction machinery segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Terex’s revenues decreased 6.1% year on year, beating analysts’ expectations by 4.2%, and Caterpillar reported a revenue decline of 4.2%, in line with consensus estimates. Terex’s stock price was unchanged after the results, and Caterpillar’s price followed a similar reaction.
Read our full analysis of Terex’s results here and Caterpillar’s results here.
Investors in the construction machinery segment have had steady hands going into earnings, with share prices flat over the last month. Astec is up 5.8% during the same time and is heading into earnings with an average analyst price target of $38.50 (compared to the current share price of $32.55).
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