Yahoo Finance Why Is Astec Industries (ASTE) Down 3% Since Last Earnings Report?
It has been about a month since the last earnings report for Astec Industries (ASTE). Shares have lost about 3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Astec Industries due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Astec Q1 Earnings Miss Estimates, Revenues Dip Y/Y
Astec Industries reported first-quarter 2024 adjusted earnings per share of 34 cents, missing the Zacks Consensus Estimate of 87 cents. The bottom line also marked a 62% decline from earnings per share of 90 cents in the prior-year quarter.
Including one-time items, the company’s earnings of 15 cents per share in the quarter under review compared with earnings of 53 cents in the year-ago quarter.
Revenues & Backlog
Astec’s revenues decreased 11.1% year over year to $309 million in the quarter under review, driven by fewer conversions in the Materials Solutions group. The top line missed the Zacks Consensus Estimate of $349 million. Domestic sales were down 13.5% year over year and International sales were down 0.9%.
ASTE reported a backlog of $560 million in the first quarter of 2024, marking a year-over-year decline of 30%. Domestic backlog fell 36.2% year over year to $438 million, while international backlog was up 6.6% to $122 million.
Operating Performance
The cost of sales fell 10.2% year over year to $232 million in the first quarter. The gross profit was $77 million compared with the year-ago quarter’s $89 million. The adjusted gross margin was 24.9% compared with the year-ago quarter’s 25.6%.
Selling, general, administrative and engineering expenses increased 5.2% year over year to around $71 million. The company reported an adjusted operating income of $12 million, a decrease from $28.5 million in the prior year. The adjusted operating margin was 3.9% compared with 8.2% in the prior-year quarter.
Adjusted EBITDA was $18.9 million in the reported quarter, down from the year-ago quarter’s $35.2 million. The adjusted EBITDA margin was 6.1% compared with 10.1% in the previous year’s comparable quarter.
Segmental Performance
Revenues in the Infrastructure Solutions segment were up 6.2% to $202 million from the year-ago quarter. The Zacks Consensus Estimate for the segment’s net sales was $231 million. The segment’s adjusted EBITDA was $25.6 million compared with the prior-year quarter’s $28.5 million.
The Materials Solutions segment’s total revenues were $107 million in the quarter under review, marking a year-over-year decrease of 19.1%. The Zacks Consensus Estimate for the segment’s net sales was $120 million. The segment’s adjusted EBITDA was $5.3 million, down 63.7% year over year.
Financial Position
Astec ended the first quarter of 2024 with cash and cash equivalents of $58 million compared with $63 million at the end of fiscal 2023. At the end of the first quarter, the company’s long-term debt was $125 million compared with $72 million at the end of 2023. The company used $47 million in cash in operating activities compared with $19.2 million in the prior-year quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -14.88% due to these changes.
VGM Scores
At this time, Astec Industries has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. It's no surprise Astec Industries has a Zacks Rank #5 (Strong Sell). We expect a below average 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, Terex (TEX), a stock from the same industry, has gained 3.2%. The company reported its results for the quarter ended March 2024 more than a month ago.
Terex reported revenues of $1.29 billion in the last reported quarter, representing a year-over-year change of +4.6%. EPS of $1.60 for the same period compares with $1.60 a year ago.
For the current quarter, Terex is expected to post earnings of $2.02 per share, indicating a change of -14% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.8% over the last 30 days.
Terex has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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Astec Industries, Inc. (ASTE) : Free Stock Analysis Report
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