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Terex (TEX) Q4 Earnings and Revenues Beat Estimates, Rise Y/Y

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Terex Corp. (TEX - Free Report) reported fourth-quarter 2022 adjusted earnings per share of $1.34, which beat the Zacks Consensus Estimate of $1.13. The bottom line surged 63% from the prior-year quarter, courtesy of strong demand and order growth.

Operational Update

Revenues in the reported quarter increased 23% year over year to $1,218 million, surpassing the Zacks Consensus Estimate of $1,096 million. The upside was driven by increased demand and improved price realization, which was partially offset by unfavorable currency translation.

The company reported a backlog of $4.1 billion, which marked a 22% rise over last year's levels.
The cost of goods sold increased 20% year over year to $982 million. Gross profit improved 36.9% to $235 million.

Selling, general and administrative expenses (SG&A) were $115 million in the quarter under review, up 12.2% from the prior-year quarter. Terex reported an operating profit of $121 million, which marked a 73% increase from the last-year quarter.

Terex Corporation Price, Consensus and EPS Surprise Terex Corporation Price, Consensus and EPS Surprise

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

Segmental Performances

The Aerial Work Platforms segment generated revenues of $672 million in the reported quarter, up 25.7% from the year-ago quarter. The segment reported an operating profit of $54 million compared with the prior-year quarter’s $25 million.

The Material Processing segment’s revenues totaled $550 million, reflecting year-over-year growth of 21.2%. The segment reported an operating income of $87 million, up 39%.

Financial Position

Terex had cash and cash equivalents of $304 million as of Dec 31, 2022, compared with $267 million as of Dec 31, 2021. The company generated $261 million of cash from operating activities in 2022 compared with $293 million in the prior year.

2022 Performance

The company reported adjusted earnings per share of $4.32 in 2022, which beat the Zacks Consensus Estimate of $4.12. The bottom line improved 41% from 2021’s level.

Revenues in 2022 increased 14% year over year to $4.4 billion, surpassing the Zacks Consensus Estimate of $4.3 billion.

2023 Outlook

For 2023, Terex expects earnings per share to range between $4.60 and $5.00. The company expects sales to be between $4.6 billion and $4.8 billion.

Price Performance

Terex's shares have gained 17.3% over the past year compared with the industry’s growth of 21.4%.

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Zacks Rank and Stocks to Consider

Terex currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the Industrial Products sector are O-I Glass, Inc (OI - Free Report) , Tenaris (TS - Free Report) and Deere & Company (DE - Free Report) . OI and TS flaunt a Zacks Rank #1 (Strong Buy) at present, and DE has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

O-I Glass has an average trailing four-quarter earnings surprise of 14.9%. The Zacks Consensus Estimate for OI’s 2022 earnings is pegged at $2.51 per share. This indicates a 15.7% increase from the prior-year reported figure. The consensus estimate for 2022 earnings has been unchanged in the past 60 days. OI’s shares gained 60.9% in the past year.

Tenaris has an average trailing four-quarter earnings surprise of 20.9%. The Zacks Consensus Estimate for TS’ 2022 earnings is pegged at $4.38 per share. This indicates a 134.2% increase from the prior-year reported figure. The consensus estimate for 2022 earnings has moved north by 2.1% in the past 60 days. Its shares gained 26.6% in the past year.

The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $28.01, suggesting an increase of 19.6% from that reported in the last year. The consensus estimate for fiscal 2023 earnings has moved 2.7% upward in the last 60 days. DE has a trailing four-quarter average earnings surprise of 7.1%. Its shares gained 3.7% in the past year.


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