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Terex (TEX) Q2 Earnings & Revenues Top Estimates, Ups '21 View

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Shares of Terex Corporation (TEX - Free Report) have gained 5% since the company reported stellar second-quarter 2021 results on Jul 29, reflecting robust bookings, and revenue growth and margin expansion in both of the business segments. The stock performance was also aided by an upbeat outlook for 2021. Adjusted earnings per share in the quarter was at $1.02, which beat the Zacks Consensus Estimate of 53 cents by a wide margin of 92% and marked a turnaround from a loss of 5 cents per share in the prior-year quarter.

Operational Update

Revenues in the reported quarter surged 50% year over year to $1,039 million and surpassed the Zacks Consensus Estimate of $993 million.

Cost of goods sold increased 38% year over year to $807 million. Gross profit soared 116% year over year to $231.6 million.

Terex Corporation Price, Consensus and EPS Surprise

Terex Corporation Price, Consensus and EPS Surprise

Terex Corporation price-consensus-eps-surprise-chart | Terex Corporation Quote

Selling, general and administrative expenses (SG&A) were $109 million in the quarter under review, up 9% from $100 million in the prior-year quarter. Terex reported an operating profit of $122.5 million compared with an operating profit of $7.4 million in the last-year quarter.

Segmental Performance

The Aerial Work Platforms segment generated revenues of $595 million in the second quarter, up 44% from the year-ago quarter. The segment reported an operating profit of $65 million against the prior-year quarter’s loss of $5 million.

The Material Processing segment’s revenues totaled $441 million, reflecting year-over-year growth of 67%. The segment reported an operating income of $72 million, up 208% year over year.

Financial Position

Terex had cash and cash equivalents of $542 million as of Jun 30, 2021, compared with $665 million as of Dec 31, 2020. The company generated $269 million of cash from operating activities in the first half of 2021 compared with $12.3 million in the prior-year comparable period. Long-term debt was $888.5 million as of Jun 30, 2021, compared with $1,166.2 million as of Dec 31, 2020.

In early July, the company completed a bolt-on acquisition with the purchase of MDS International (MDS), a manufacturer of heavy duty aggregate and recycling trommels, apron feeders and conveyor systems.

Guidance

Backed by strong first-half performance and improved end markets, Terex raised its guidance for earnings per share for 2021 to the range of $2.85 to $3.05, higher than the previous expectation in the band of $2.35 to $2.55.

The company expects sales to be around $3.9 billion in 2021, up from its previous expectation of $3.7 billion in 2021.

Price Performance

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Image Source: Zacks Investment Research

Terex's shares have soared 157.6% over the past year, compared with the industry’s rally of 57.7%.

Zacks Rank and Other Stocks to Consider

Terex currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Some other top-ranked stocks in the Industrial Products sector include Greif, Inc. (GEF - Free Report) , Lindsay Corp. (LNN - Free Report) and Pentair plc (PNR - Free Report) . While Greif and Lindsay sport a Zacks Rank #1, Pentair carries a Zacks Rank #2 (Buy), at present.

Greif has an anticipated earnings growth rate of 47.2% for fiscal 2021. The company’s shares have gained 29.9%, in the past year.

Lindsay has an estimated earnings growth rate of 1% for the ongoing fiscal year. In a year's time, the company’s shares have rallied 22.3%.

Pentair has a projected earnings growth rate of 26% for 2021. The stock has appreciated 36.7% in the past year.


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