Construction equipment company Astec (NASDAQ: ASTE) will be reporting results tomorrow before market open. Here’s what to look for.
Astec missed analysts’ revenue expectations by 4% last quarter, reporting revenues of $359 million, up 6.5% year on year. It was a strong quarter for the company, with an impressive 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.
This quarter, analysts are expecting Astec’s revenue to grow 3.6% year on year to $320.4 million, a reversal from the 11.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.46 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 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 Q1 results, giving us a hint as to what we can expect. Lindsay delivered year-on-year revenue growth of 23.5%, beating analysts’ expectations by 4%, and Shyft reported revenues up 3.4%, topping estimates by 2.8%. Lindsay traded down 8% following the results while Shyft was up 18.1%.
Read our full analysis of Lindsay’s results here and Shyft’s results here.
Investors in the heavy machinery segment have had fairly steady hands going into earnings, with share prices down 1.4% on average over the last month. Astec is up 2.8% during the same time and is heading into earnings with an average analyst price target of $43 (compared to the current share price of $35.40).
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