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Terex Corporation (TEX - Free Report) delivered first-quarter 2019 adjusted earnings per share of 87 cents which beat the Zacks Consensus Estimate of 57 cents by a margin of 53%. The top-line also improved 2% from the prior-year quarter.
Including one-time items, Terex reported earnings of 79 cents per share in the quarter compared with 84 cents a year ago.
Operational Update
Revenues in the quarter rose 2% year over year to $1.14 billion, surpassing the Zacks Consensus Estimate of $1.12 billion. Cost of goods sold rose 1% to $899 million from $888 million in the prior-year quarter. Gross profit increased 4% year over year to $237.8 million.
Terex Corporation Price, Consensus and EPS Surprise
Selling, general and administrative expenses increased 2.8% year over year to $138 million. Terex reported an operating income of 99.7 million compared with $94.31 million in the year-ago quarter, reflecting year-over-year increase of 6%. Adjusted operating income in the reported quarter was $105.7 million.
Segment Performance
The Aerial Work Platforms (AWP) segment reported revenues of $728 million in the first quarter, down 1.3% from $738 million in the prior-year quarter. Operating income declined 15% to $60 million from $70 million in the prior-year quarter.
The Material Processing (MP) segment revenues totaled $346 million, indicating year-over-year increase of around 10%. The segment reported operating income of $49 million, up 23% year over year.
Financial Position
Terex had cash and cash equivalents of $304.6 million at the end of first quarter of 2019, compared with $340 million at 2018-end. Net cash utilized in operating activities was $265 million in the reported quarter compared with $44 million in the prior-year quarter. Long-term debt was $1,467.3 million as of Mar 31, 2019, compared with $1,210.6 million as of Dec 31, 2018.
2019 Guidance
Terex now expects earnings per share to be in the upper half of its guidance range of $3.60 to $4.20. It anticipates net sales of around $4.7 billion. The company will focus on a disciplined capital allocation strategy. Moreover, the sale of Demag Mobile Crane business and the exit from the mobile crane product lines is likely to improve Terex’s operating results. The sale remains on track to close by mid 2019, subject to approvals and customary closing conditions.
Share Price Performance
Terex’ stock has plunged 19.7% over the past year, compared with the industry’s decline of 8.2%.
DMC Global has an estimated earnings growth rate of 78.7% for the ongoing year. The company’s shares have soared 77% in the past year.
DXP Enterprises has a projected earnings growth rate of 22.7% for the current year. The stock has appreciated 14% in the past year.
Lawson Products has an expected earnings growth rate of 24.5% for the current year. The stock has appreciated 42% in a year’s time.
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Terex (TEX) Q1 Earnings Surpass Estimates, Improve Y/Y
Terex Corporation (TEX - Free Report) delivered first-quarter 2019 adjusted earnings per share of 87 cents which beat the Zacks Consensus Estimate of 57 cents by a margin of 53%. The top-line also improved 2% from the prior-year quarter.
Including one-time items, Terex reported earnings of 79 cents per share in the quarter compared with 84 cents a year ago.
Operational Update
Revenues in the quarter rose 2% year over year to $1.14 billion, surpassing the Zacks Consensus Estimate of $1.12 billion. Cost of goods sold rose 1% to $899 million from $888 million in the prior-year quarter. Gross profit increased 4% year over year to $237.8 million.
Terex Corporation Price, Consensus and EPS Surprise
Terex Corporation price-consensus-eps-surprise-chart | Terex Corporation Quote
Selling, general and administrative expenses increased 2.8% year over year to $138 million. Terex reported an operating income of 99.7 million compared with $94.31 million in the year-ago quarter, reflecting year-over-year increase of 6%. Adjusted operating income in the reported quarter was $105.7 million.
Segment Performance
The Aerial Work Platforms (AWP) segment reported revenues of $728 million in the first quarter, down 1.3% from $738 million in the prior-year quarter. Operating income declined 15% to $60 million from $70 million in the prior-year quarter.
The Material Processing (MP) segment revenues totaled $346 million, indicating year-over-year increase of around 10%. The segment reported operating income of $49 million, up 23% year over year.
Financial Position
Terex had cash and cash equivalents of $304.6 million at the end of first quarter of 2019, compared with $340 million at 2018-end. Net cash utilized in operating activities was $265 million in the reported quarter compared with $44 million in the prior-year quarter. Long-term debt was $1,467.3 million as of Mar 31, 2019, compared with $1,210.6 million as of Dec 31, 2018.
2019 Guidance
Terex now expects earnings per share to be in the upper half of its guidance range of $3.60 to $4.20. It anticipates net sales of around $4.7 billion. The company will focus on a disciplined capital allocation strategy. Moreover, the sale of Demag Mobile Crane business and the exit from the mobile crane product lines is likely to improve Terex’s operating results. The sale remains on track to close by mid 2019, subject to approvals and customary closing conditions.
Share Price Performance
Terex’ stock has plunged 19.7% over the past year, compared with the industry’s decline of 8.2%.
Zacks Rank & Stocks to Consider
Terex currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the Industrial Products sector are DMC Global Inc. (BOOM - Free Report) , DXP Enterprises, Inc. (DXPE - Free Report) and Lawson Products, Inc. , all sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
DMC Global has an estimated earnings growth rate of 78.7% for the ongoing year. The company’s shares have soared 77% in the past year.
DXP Enterprises has a projected earnings growth rate of 22.7% for the current year. The stock has appreciated 14% in the past year.
Lawson Products has an expected earnings growth rate of 24.5% for the current year. The stock has appreciated 42% in a year’s time.
Will you retire a millionaire?
One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”
Click to get it free >>