Shares of Astec Industries (ASTE) plummeted 5.64% in intraday trading on Wednesday following the release of its second-quarter 2025 earnings report. The stock's sharp decline comes despite the company beating earnings estimates, highlighting investors' concerns over missed sales targets and future growth prospects.
Astec reported Q2 adjusted earnings per share of $0.88, surpassing analysts' expectations of $0.56 and showing improvement from $0.61 in the same quarter last year. However, the company's net sales fell short of estimates, coming in at $330.3 million compared to the expected $354.2 million and down 4.4% from the previous year.
The mixed results were accompanied by an update to Astec's full-year guidance. The company now expects adjusted EBITDA for the year to be between $123 million and $142 million, incorporating contributions from its recent TerraSource acquisition. This updated outlook may have failed to alleviate investor concerns about the company's growth trajectory in the face of challenging market conditions.
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