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Terex (TEX) to Report Q4 Earnings: What's in the Offing?

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Terex Corporation (TEX - Free Report) is scheduled to report fourth-quarter fiscal 2022 results on Feb 9, after the closing bell.

Q4 Estimates

The Zacks Consensus Estimate for the fiscal fourth-quarter revenues is pegged at $1.10 billion, indicating growth of 10.7% from the prior-year quarter’s figure. The consensus mark for quarterly earnings stands at $1.13, suggesting growth of 38% from the prior-year quarter's reported figure. The estimate has been unchanged over the past 30 days.

Q3 Results

Terex delivered year-over-year improvement in both third-quarter fiscal 2022 revenues and earnings, courtesy of strong demand and order growth. The company beat the Zacks Consensus Estimate on both metrics. The company has a trailing four-quarter positive earnings surprise of 36.7%, on average.

Terex Corporation Price and EPS Surprise

 

Terex Corporation Price and EPS Surprise

Terex Corporation price-eps-surprise | Terex Corporation Quote

Key Factors to Note

Terex has been delivering year-over-year growth in earnings over the past seven quarters, driven by robust bookings and revenue growth, and margin expansion in both of the business segments. Its backlog has also shown year-over-year improvement over the past eight quarters and reached a solid $3.9 billion at the end of the third quarter of 2022. Compared with last year’s levels, the backlog improved 33%. Both segments witnessed an improvement in backlog over the said time frame. The backlog in the AWP segment was $2.72 billion, while the same in the MP segment was $1.2 billion at the third-quarter end. Robust backlog and strong end-market demand are expected to have aided its fourth-quarter top-line performance.

The company’s pricing actions are likely to have negated the impact of higher input costs witnessed throughout the quarter. Even though end-market demand remains strong, the supply chain, labor, freight and logistics challenges have been impacting production, consequently impairing Terex’s ability to meet these levels.

What the Zacks Model Indicates

Our proven model doesn’t conclusively predict an earnings beat for Terex this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for TEX is -0.60%.

Zacks Rank: Terex currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Price Performance

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Over the past year, shares of Terex have gained 24.4% against the industry’s 22.9% rise.

Stocks Poised to Beat Earnings Estimates

Here are some Industrial Products stocks, which, according to our model, have the right combination of elements to post an earnings beat in their upcoming releases:

Allegion plc (ALLE - Free Report) currently has an Earnings ESP of +4.19% and a Zacks Rank of 1. The Zacks Consensus Estimate for fourth-quarter 2022 earnings has been unchanged in the past 30 days and is pegged at $1.37 per share. This suggests year-over-year growth of 23.4%.

The Zacks Consensus Estimate for ALLE’s quarterly revenues is pegged at $849 million, indicating year-over-year growth of 19.7%. ALLE has a trailing four-quarter earnings surprise of 8.8%, on average.

Deere & Co. (DE - Free Report) currently has an Earnings ESP of +2.30% and a Zacks Rank of 2. The Zacks Consensus Estimate for DE’s first-quarter fiscal 2023 earnings has been unchanged in the past 30 days and is pegged at $5.51 per share. The consensus mark suggests year-over-year growth of 88.7%.

The Zacks Consensus Estimate for DE’s quarterly revenues is pegged at $11.4 billion, indicating growth of 33.9% from the prior-year quarter’s reported level. DE has a trailing four-quarter earnings surprise of 7.1%, on average.

The Middleby Corporation (MIDD - Free Report) currently has an Earnings ESP of +2.20% and a Zacks Rank of 2. The Zacks Consensus Estimate for fourth-quarter 2022 earnings has been unchanged in the past 30 days and is pegged at $2.46 per share. This suggests year-over-year growth of 16.6%.

The Zacks Consensus Estimate for quarterly revenues is pegged at $1.01 billion, indicating growth of 16.8% from the prior-year quarter’s reported level.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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