Construction equipment company Astec (NASDAQ: ASTE) will be reporting results this Wednesday before market hours. Here’s what investors should know.
Astec beat analysts’ revenue expectations last quarter, reporting revenues of $396.3 million, up 20.3% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates.
Is Astec a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Astec’s revenue to grow 22.8% year on year, a reversal from the 4.4% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Astec has missed Wall Street’s revenue estimates multiple 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 50.5%, beating analysts’ expectations by 4%, and Wabash reported a revenue decline of 9.1%, topping estimates by 3.6%. Terex traded down 2.7% following the results while Wabash was also down 6.8%.
Read our full analysis of Terex’s results here and Wabash’s results here.
Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the heavy machinery stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2% on average over the last month. Astec is down 10.5% during the same time and is heading into earnings with an average analyst price target of $72.50 (compared to the current share price of $52.57).
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