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Terex Corporation (TEX - Free Report) reported first-quarter 2023 adjusted earnings per share of $1.60, which beat the Zacks Consensus Estimate of $1.05. The bottom line surged 116% from the prior-year quarter, courtesy of strong demand and a healthy backlog.
Operational Update
Revenues in the reported quarter increased 23.2% year over year to $1,236 million, surpassing the Zacks Consensus Estimate of $1,134 million. The upside was driven by increased demand, higher volumes, and improved price realization, partially offset by unfavorable currency translation.
The company reported a backlog of $4.1 billion in the first quarter of 2023. The cost of goods sold increased 17.2% year over year to $957 million. Gross profit improved 49.8% to $279 million.
Selling, general and administrative expenses (SG&A) were $131 million in the quarter under review, up 17.7% from the prior-year quarter. Terex reported an operating profit of $148 million, which marked a 98% increase from the prior-year quarter.
Terex Corporation Price, Consensus and EPS Surprise
The Aerial Work Platforms segment generated revenues of $686 million in the reported quarter, up 24.4% from the year-ago quarter. The segment reported an operating profit of $83.1 million compared with the prior-year quarter’s $32.5 million.
The Material Processing segment’s revenues totaled $554 million, reflecting year-over-year growth of 22.3%. The segment reported an operating income of $85.3 million, up 32.2%.
Financial Position
Terex had cash and cash equivalents of $254 million as of Mar 31, 2023, compared with $218 million as of Mar 31, 2022. The company generated $9.1 million of cash from operating activities in 2022 against an outflow of $51.7 million in the prior year quarter.
2023 Outlook
Backed by strong performance in the first quarter, Terex raised its 2023 outlook. The company expects earnings per share between $5.60 and $6 .00, up from the previously disclosed $4.60-$5 .00. The company expects sales between $4.8 billion and $5 billion compared with the previously stated $4.6-$4.8 billion.
Price Performance
Terex's shares have gained 31.3% over the past year compared with the industry’s growth of 0.5%.
Some other top-ranked stocks from the Industrial Products sector are Worthington Industries, Inc. (WOR - Free Report) , AptarGroup, Inc. (ATR - Free Report) , and OI Glass Inc. (OI - Free Report) . WOR and ATR flaunt a Zacks Rank #1 at present, and OI has a Zacks Rank #2 (Buy).
Worthington Industries has an average trailing four-quarter earnings surprise of 27.5%. The Zacks Consensus Estimate for WOR’s fiscal 2023 earnings is pegged at $4.93 per share. The consensus estimate for 2023 earnings has moved north by 17.7% in the past 60 days. Its shares gained 19.2% in the last year.
AptarGroup has an average trailing four-quarter earnings surprise of 6.4%. The Zacks Consensus Estimate for ATR’s 2023 earnings is pegged at $4.04 per share. The consensus estimate for 2023 earnings has moved 5% north in the past 60 days. ATR’s shares gained 2.7% in the last year.
The Zacks Consensus Estimate for OI Glass’ 2023 EPS is pegged at $2.59. The consensus estimate for 2023 earnings rose 0.8% in the last 60 days. OI has a trailing four-quarter average earnings surprise of 16.5%. Its shares gained 50% in the last year.
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Terex (TEX) Q1 Earnings & Revenues Beat Estimates, View Raised
Terex Corporation (TEX - Free Report) reported first-quarter 2023 adjusted earnings per share of $1.60, which beat the Zacks Consensus Estimate of $1.05. The bottom line surged 116% from the prior-year quarter, courtesy of strong demand and a healthy backlog.
Operational Update
Revenues in the reported quarter increased 23.2% year over year to $1,236 million, surpassing the Zacks Consensus Estimate of $1,134 million. The upside was driven by increased demand, higher volumes, and improved price realization, partially offset by unfavorable currency translation.
The company reported a backlog of $4.1 billion in the first quarter of 2023.
The cost of goods sold increased 17.2% year over year to $957 million. Gross profit improved 49.8% to $279 million.
Selling, general and administrative expenses (SG&A) were $131 million in the quarter under review, up 17.7% from the prior-year quarter. Terex reported an operating profit of $148 million, which marked a 98% increase from the prior-year quarter.
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 $686 million in the reported quarter, up 24.4% from the year-ago quarter. The segment reported an operating profit of $83.1 million compared with the prior-year quarter’s $32.5 million.
The Material Processing segment’s revenues totaled $554 million, reflecting year-over-year growth of 22.3%. The segment reported an operating income of $85.3 million, up 32.2%.
Financial Position
Terex had cash and cash equivalents of $254 million as of Mar 31, 2023, compared with $218 million as of Mar 31, 2022. The company generated $9.1 million of cash from operating activities in 2022 against an outflow of $51.7 million in the prior year quarter.
2023 Outlook
Backed by strong performance in the first quarter, Terex raised its 2023 outlook. The company expects earnings per share between $5.60 and $6 .00, up from the previously disclosed $4.60-$5 .00. The company expects sales between $4.8 billion and $5 billion compared with the previously stated $4.6-$4.8 billion.
Price Performance
Terex's shares have gained 31.3% over the past year compared with the industry’s growth of 0.5%.
Image Source: Zacks Investment Research
Zacks Rank and Other Stocks to Consider
Terex currently carries 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 from the Industrial Products sector are Worthington Industries, Inc. (WOR - Free Report) , AptarGroup, Inc. (ATR - Free Report) , and OI Glass Inc. (OI - Free Report) . WOR and ATR flaunt a Zacks Rank #1 at present, and OI has a Zacks Rank #2 (Buy).
Worthington Industries has an average trailing four-quarter earnings surprise of 27.5%. The Zacks Consensus Estimate for WOR’s fiscal 2023 earnings is pegged at $4.93 per share. The consensus estimate for 2023 earnings has moved north by 17.7% in the past 60 days. Its shares gained 19.2% in the last year.
AptarGroup has an average trailing four-quarter earnings surprise of 6.4%. The Zacks Consensus Estimate for ATR’s 2023 earnings is pegged at $4.04 per share. The consensus estimate for 2023 earnings has moved 5% north in the past 60 days. ATR’s shares gained 2.7% in the last year.
The Zacks Consensus Estimate for OI Glass’ 2023 EPS is pegged at $2.59. The consensus estimate for 2023 earnings rose 0.8% in the last 60 days. OI has a trailing four-quarter average earnings surprise of 16.5%. Its shares gained 50% in the last year.