Construction equipment company Astec (NASDAQ:ASTE) will be reporting earnings this Wednesday before market open. Here’s what to look for.
Astec beat analysts’ revenue expectations last quarter, reporting revenues of $400.6 million, up 11.6% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA 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 19.4% year on year, improving from the 6.5% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to 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 Q1 results, giving us a hint as to what we can expect. Caterpillar delivered year-on-year revenue growth of 22.2%, beating analysts’ expectations by 7.4%, and Terex reported revenues up 41.1%, topping estimates by 2.6%. Caterpillar traded up 9.8% following the results while Terex was down 5.1%.
Read our full analysis of Caterpillar’s results here and Terex’s results here.
There has been positive sentiment among investors in the heavy machinery segment, with share prices up 7.6% on average over the last month. Astec is up 11.4% during the same time and is heading into earnings with an average analyst price target of $71.75 (compared to the current share price of $61.57).
ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.
AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.