Overview
Astec Q2 net sales fall 4.4% yr/yr, missing analyst expectations
Adjusted EPS for Q2 beats consensus, reflecting improved operational efficiency
Co completes acquisition of TerraSource, expected to boost future earnings
Outlook
Astec updates full-year adjusted EBITDA guidance to $123 mln-$142 mln
Company expects TerraSource to contribute $13 mln-$17 mln in H2 adjusted EBITDA
Result Drivers
INFRASTRUCTURE CHALLENGES - Net sales in Infrastructure Solutions fell 7.6% due to weak demand for mobile paving and forestry equipment
OPERATIONAL EFFICIENCIES - Co attributes growth in adjusted EBITDA and EPS to enhanced manufacturing and procurement efficiencies
TERRASOURCE ACQUISITION - Acquisition completed, expected to boost earnings with strong aftermarket parts revenue
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Miss | $330.30 mln | $354.20 mln (2 Analysts) |
Q2 Adjusted EPS | Beat | $0.88 | $0.56 (2 Analysts) |
Q2 Adjusted EBITDA | $29 mln | ||
Q2 Adjusted EBITDA Margin | 8.8% | ||
Q2 Adjusted Operating margin | 7.9% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the heavy machinery & vehicles peer group is "buy"
Wall Street's median 12-month price target for Astec Industries Inc is $43.00, about 6.1% above its August 5 closing price of $40.39
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 14 three months ago
Press Release: ID:nGNX5LH7RP
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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