We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Astec (ASTE) Lags Earnings, Tops Revenue Estimates in Q4
Read MoreHide Full Article
Astec Industries, Inc. (ASTE - Free Report) posted earnings of 53 cents per share in fourth-quarter 2016, soaring 231% year over year but fell short of the Zacks Consensus Estimate of 54 cents.
The maker of building, paving and mining equipment Astec, posted total revenue of $327 million, rising 52% from the $215 million reported in the year-ago quarter. Revenues beat the Zacks Consensus Estimate of $274 million.
Astec’s domestic sales jumped 65% year over year to $265 million. International sales also increased 13% year over year to $62 million.
Astec Industries, Inc. Price, Consensus and EPS Surprise
Cost of sales was up 54% year over year to $262 million. Gross profit of $64.5 million increased from $45 million reported in the year-ago quarter. Gross margin decreased 130 basis points (bps) year over year to 19.7%.
Selling, general, administrative and engineering expenses went up 11.5% year over year to $45.4 million. Income from operations soared 305% year over year to $19 million. Operating margin expanded 360 bps year over year to 5.8%.
Segment Performance
Revenues for the Infrastructure Group segment advanced 111% to $194 million from $91.9 million in the year-ago quarter. Segment profit improved an impressive 354.7% year over year to $20 million.
Total revenue for the Aggregate and Mining Group segment declined 3% year over year to $82.4 million. Profit improved 28% year over year to $6.7 million.
The Energy Group segment’s total revenue increased 31.8% to $50 million from $38 million in fourth-quarter 2015. The segment reported operating profit of $0.9 million, up from $0.8 million in the year-ago quarter.
Financial Position
Astec reported cash and cash equivalents of $82.4 million at the end of 2016, up from $25 million as of Dec 31, 2015. Receivables increased to $110.7 million as of Dec 31, 2016, from $102 million as of Dec 31, 2015. Inventories went down to $360 million as of Dec 31, 2016, from $384.8 million as of Dec 31, 2015.
Astec’s total backlog increased 13% to $357.4 million at the end of 2016 from $315.9 million at 2015 end. Domestic backlog went up 13% year over year to $294.8 million as of Dec 31, 2015 and international backlog improved 16% year over year to $62.6 million at the end of 2016.
2016 Performance
Astec posted earnings of $2.38 per share for 2016, up 68% year over year. Earnings missed the Zacks Consensus Estimate of $2.40. Revenues for full-year 2016 increased 17% year over year to $1.15 billion. Revenues beat the Zacks Consensus Estimate of $1.1 billion.
Outlook
Astec’s Aggregate and Mining group is expected to improve in the domestic market for products targeted at traditional rock quarries while the mining market continued to be slow. In Energy group the company experienced an increase in quote and order activity in the oil and gas markets.
Given these positive developments, and order activity in January, Astec remains optimistic about 2017. While the increase in order activity is a good sign for the year ahead, the company still faces significant challenges on U.S. exports given the continued strength of the U.S. dollar.
Share Price Performance
In the last one year, Astec has outperformed the Zacks classified Machinery-Construction/Mining sub-industry with respect to price performance. The stock gained around 77%, while the industry rose 48% over the same time frame.
Kennametal has an earnings ESP of 9.90% in the trailing four quarters. Chart Industries reported an impressive average earnings surprise of 548.51% inthe last four quarters, while II-VI Incorporated reported an average earnings surprise of 59.23% in the past four quarters.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Astec (ASTE) Lags Earnings, Tops Revenue Estimates in Q4
Astec Industries, Inc. (ASTE - Free Report) posted earnings of 53 cents per share in fourth-quarter 2016, soaring 231% year over year but fell short of the Zacks Consensus Estimate of 54 cents.
The maker of building, paving and mining equipment Astec, posted total revenue of $327 million, rising 52% from the $215 million reported in the year-ago quarter. Revenues beat the Zacks Consensus Estimate of $274 million.
Astec’s domestic sales jumped 65% year over year to $265 million. International sales also increased 13% year over year to $62 million.
Astec Industries, Inc. Price, Consensus and EPS Surprise
Astec Industries, Inc. Price, Consensus and EPS Surprise | Astec Industries, Inc. Quote
Cost of sales was up 54% year over year to $262 million. Gross profit of $64.5 million increased from $45 million reported in the year-ago quarter. Gross margin decreased 130 basis points (bps) year over year to 19.7%.
Selling, general, administrative and engineering expenses went up 11.5% year over year to $45.4 million. Income from operations soared 305% year over year to $19 million. Operating margin expanded 360 bps year over year to 5.8%.
Segment Performance
Revenues for the Infrastructure Group segment advanced 111% to $194 million from $91.9 million in the year-ago quarter. Segment profit improved an impressive 354.7% year over year to $20 million.
Total revenue for the Aggregate and Mining Group segment declined 3% year over year to $82.4 million. Profit improved 28% year over year to $6.7 million.
The Energy Group segment’s total revenue increased 31.8% to $50 million from $38 million in fourth-quarter 2015. The segment reported operating profit of $0.9 million, up from $0.8 million in the year-ago quarter.
Financial Position
Astec reported cash and cash equivalents of $82.4 million at the end of 2016, up from $25 million as of Dec 31, 2015. Receivables increased to $110.7 million as of Dec 31, 2016, from $102 million as of Dec 31, 2015. Inventories went down to $360 million as of Dec 31, 2016, from $384.8 million as of Dec 31, 2015.
Astec’s total backlog increased 13% to $357.4 million at the end of 2016 from $315.9 million at 2015 end. Domestic backlog went up 13% year over year to $294.8 million as of Dec 31, 2015 and international backlog improved 16% year over year to $62.6 million at the end of 2016.
2016 Performance
Astec posted earnings of $2.38 per share for 2016, up 68% year over year. Earnings missed the Zacks Consensus Estimate of $2.40. Revenues for full-year 2016 increased 17% year over year to $1.15 billion. Revenues beat the Zacks Consensus Estimate of $1.1 billion.
Outlook
Astec’s Aggregate and Mining group is expected to improve in the domestic market for products targeted at traditional rock quarries while the mining market continued to be slow. In Energy group the company experienced an increase in quote and order activity in the oil and gas markets.
Given these positive developments, and order activity in January, Astec remains optimistic about 2017. While the increase in order activity is a good sign for the year ahead, the company still faces significant challenges on U.S. exports given the continued strength of the U.S. dollar.
Share Price Performance
In the last one year, Astec has outperformed the Zacks classified Machinery-Construction/Mining sub-industry with respect to price performance. The stock gained around 77%, while the industry rose 48% over the same time frame.
Zacks Rank & Key Picks
Astec currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the sector include Kennametal Inc. (KMT - Free Report) , Chart Industries, Inc. (GTLS - Free Report) and II-VI Incorporated . All of the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Kennametal has an earnings ESP of 9.90% in the trailing four quarters. Chart Industries reported an impressive average earnings surprise of 548.51% inthe last four quarters, while II-VI Incorporated reported an average earnings surprise of 59.23% in the past four quarters.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>