Advertisement
Australia markets closed
  • ALL ORDS

    8,120.20
    -11.90 (-0.15%)
     
  • AUD/USD

    0.6675
    +0.0004 (+0.06%)
     
  • ASX 200

    7,851.70
    -12.00 (-0.15%)
     
  • OIL

    78.45
    -1.35 (-1.69%)
     
  • GOLD

    2,424.00
    -14.50 (-0.59%)
     
  • Bitcoin AUD

    106,943.47
    +6,413.26 (+6.38%)
     
  • CMC Crypto 200

    1,537.65
    +49.11 (+3.30%)
     

Why Is Astec Industries (ASTE) Up 7.7% Since Last Earnings Report?

A month has gone by since the last earnings report for Astec Industries (ASTE). Shares have added about 7.7% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Astec Industries due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Astec Earnings Beat Estimates in Q4, Revenues Dip Y/Y

Astec reported fourth-quarter 2023 adjusted earnings per share of 90 cents, beating the Zacks Consensus Estimate of earnings of 62 cents. The company reported adjusted earnings of 34 cents per share in the prior-year quarter.

Including one-time items, the company reported earnings of 65 cents in the quarter under review against a loss of 4 cents per share in the year-ago quarter.

Revenues & Backlog

Astec’s revenues decreased 3.6% year over year to $337 million in the quarter under review. The top line missed the Zacks Consensus Estimate of $353 million. Domestic sales were up 1.5% year over year, while international sales moved down 24.7%.

Astec reported a backlog of $570 million as of Dec 31, 2023 marking a year-over-year decline of 37.6%. Domestic backlog fell 41.8% year over year to $450 million, while international backlog increased 14.1% to $120 million.

Operating Performance

The cost of sales fell 11% year over year to $248 million in the fourth quarter. The gross profit was $89 million compared with the year-ago quarter’s $71 million. The gross margin was 26.4% compared with the year-ago quarter’s 20.3%.

Selling, general, administrative and engineering (SG&A) increased 10.3% year over year to around $70 million. The company reported an adjusted operating income of $26.3 million, an increase from $14.7 million in the prior year. The adjusted operating margin was 7.8% compared with 4.2% in the prior-year quarter.

Adjusted EBITDA was $33 million in the reported quarter, up from the year-ago quarter’s $22 million. The adjusted EBITDA margin was 9.7% compared with 6.3% in the previous year.

Segment Performances

Revenues in the Infrastructure Solutions segment were up 0.7% to $240 million from the year-ago quarter. We predicted the segment’s sales to be $237 million. The segment’s adjusted EBITDA was $35.3 million, up 52.8% from the prior-year quarter.

ADVERTISEMENT

The Materials Solutions segment’s total revenues were $95 million in the quarter under review, reflecting a year-over-year fall of 13.1% due to softer demand. We expected sales of $115 million for the segment. The segment’s adjusted EBITDA was $8.9 million, down 8.2% year over year.

Financial Position

Astec ended 2023 with cash, cash equivalents and restricted cash of $63 million compared with $66 million at 2022 end. At the end of 2023, the company’s long-term debt was $72 million compared with $78 million at the end of 2022.

2023 Performance

Astec reported an adjusted EPS of $2.67 in 2023 compared with $1.23 in the prior year. Earnings beat the Zacks Consensus Estimate of $2.39.

Sales were up 5% year over year to $1.34 billion. The top line missed the Zacks Consensus Estimate of $1.35 billion.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision flatlined during the past month.

VGM Scores

At this time, Astec Industries has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Astec Industries has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Astec Industries is part of the Zacks Manufacturing - Construction and Mining industry. Over the past month, The Manitowoc Company, Inc. (MTW), a stock from the same industry, has gained 1.4%. The company reported its results for the quarter ended December 2023 more than a month ago.

The Manitowoc Company reported revenues of $595.8 million in the last reported quarter, representing a year-over-year change of -4.2%. EPS of $0.09 for the same period compares with $0.74 a year ago.

The Manitowoc Company is expected to post earnings of $0.21 per share for the current quarter, representing a year-over-year change of -54.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.8%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for The Manitowoc Company. Also, the stock has a VGM Score of A.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Astec Industries, Inc. (ASTE) : Free Stock Analysis Report

The Manitowoc Company, Inc. (MTW) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research