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The Zacks Consensus Estimate for TEX’s second-quarter revenues is pegged at $1.26 billion, indicating growth of 16.6% from the year-ago quarter’s reported figure. The consensus mark for earnings per share is pegged at $1.61, suggesting an improvement of 50.5% from the prior-year quarter’s reported number.
In the last reported quarter, Terex’s earnings and revenues increased year over year. The bottom and top lines beat the Zacks Consensus Estimate. The company delivered a trailing four-quarter average earnings surprise of 27.1%.
Key Factors
Terex has been benefiting from a robust backlog and strong end-market demand over the past few quarters. This is expected to have supported its top-line performance in the second quarter. Our model predicts the total backlog to be $3.9 billion in the quarter.
Growth is also expected to have been driven by the company’s efforts to overcome supply disruptions and increase production. Price hikes and cost reductions are likely to have helped offset inflationary pressures and aided earnings in the quarter.
The Material Processing segment’s revenues are likely to have been driven by robust end-market demand across minerals processing, material handling and lifting, environmental, and concrete. Our model predicts the segment’s revenues to grow 11.8% year over year to $537 million in the quarter under review. Our projection for the segment’s operating profit is pinned at $94 million, indicating a year-over-year increase of 18.2%.
The Aerial Work Platforms segment has been witnessing continued strong global demand, driven by fleet replacement and growth. This is likely to have aided growth in the second quarter as well.
We expect revenues of $691 million for the segment, suggesting an increase of 15.6% from the prior year’s actual. Estimates for operating income are pinned at $86 million, indicating year-over-year growth of 85.5%.
TEX’s performance has likely been impacted by ongoing material shortages and production delays in the earlier quarters. However, supply chain issues have shown signs of easing lately. This is likely to have benefitted the company’s second-quarter performance.
What the Zacks Model Indicates
Our proven model predicts an earnings beat for Terex this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is precisely the case here.
Earnings ESP: Terex has an Earnings ESP of +2.14%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Terex's shares have gained 88.2% over the past year compared with the industry’s growth of 44.7%.
Image Source: Zacks Investment Research
Other Stocks to Consider
Here are some other Industrial Products stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases.
AptarGroup, Inc. (ATR - Free Report) , scheduled to release earnings on Jul 27, presently has an Earnings ESP of +1.69% and a Zacks Rank of 2.
The Zacks Consensus Estimate for ATR’s earnings for the second quarter is pegged at $1.13 per share. The company has a trailing four-quarter surprise of 6.4%, on average.
Eaton Corporation plc (ETN - Free Report) , set to release earnings on Aug 1, currently has an Earnings ESP of +0.38% and a Zacks Rank of 2.
The consensus estimate for ETN’s earnings for the second quarter is pegged at $2.11 per share. The company has a trailing four-quarter surprise of 2.5%, on average.
Illinois Tool Works (ITW - Free Report) , set to release earnings on Aug 1, has an Earnings ESP of +0.54% and sports a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for ITW’s second-quarter earnings is pegged at $2.36 per share, suggesting a year-over-year improvement of 0.8%. The company has a trailing four-quarter surprise of 2.1%, on average.
Image: Bigstock
Terex (TEX) to Report Q2 Earnings: What's in the Offing?
Terex Corporation (TEX - Free Report) is scheduled to report second-quarter 2023 results on Aug 1, before the opening bell.
Q2 Estimates
The Zacks Consensus Estimate for TEX’s second-quarter revenues is pegged at $1.26 billion, indicating growth of 16.6% from the year-ago quarter’s reported figure. The consensus mark for earnings per share is pegged at $1.61, suggesting an improvement of 50.5% from the prior-year quarter’s reported number.
Terex Corporation Price and EPS Surprise
Terex Corporation price-eps-surprise | Terex Corporation Quote
Q1 Results
In the last reported quarter, Terex’s earnings and revenues increased year over year. The bottom and top lines beat the Zacks Consensus Estimate. The company delivered a trailing four-quarter average earnings surprise of 27.1%.
Key Factors
Terex has been benefiting from a robust backlog and strong end-market demand over the past few quarters. This is expected to have supported its top-line performance in the second quarter. Our model predicts the total backlog to be $3.9 billion in the quarter.
Growth is also expected to have been driven by the company’s efforts to overcome supply disruptions and increase production. Price hikes and cost reductions are likely to have helped offset inflationary pressures and aided earnings in the quarter.
The Material Processing segment’s revenues are likely to have been driven by robust end-market demand across minerals processing, material handling and lifting, environmental, and concrete. Our model predicts the segment’s revenues to grow 11.8% year over year to $537 million in the quarter under review. Our projection for the segment’s operating profit is pinned at $94 million, indicating a year-over-year increase of 18.2%.
The Aerial Work Platforms segment has been witnessing continued strong global demand, driven by fleet replacement and growth. This is likely to have aided growth in the second quarter as well.
We expect revenues of $691 million for the segment, suggesting an increase of 15.6% from the prior year’s actual. Estimates for operating income are pinned at $86 million, indicating year-over-year growth of 85.5%.
TEX’s performance has likely been impacted by ongoing material shortages and production delays in the earlier quarters. However, supply chain issues have shown signs of easing lately. This is likely to have benefitted the company’s second-quarter performance.
What the Zacks Model Indicates
Our proven model predicts an earnings beat for Terex this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is precisely the case here.
Earnings ESP: Terex has an Earnings ESP of +2.14%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Price Performance
Terex's shares have gained 88.2% over the past year compared with the industry’s growth of 44.7%.
Image Source: Zacks Investment Research
Other Stocks to Consider
Here are some other Industrial Products stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases.
AptarGroup, Inc. (ATR - Free Report) , scheduled to release earnings on Jul 27, presently has an Earnings ESP of +1.69% and a Zacks Rank of 2.
The Zacks Consensus Estimate for ATR’s earnings for the second quarter is pegged at $1.13 per share. The company has a trailing four-quarter surprise of 6.4%, on average.
Eaton Corporation plc (ETN - Free Report) , set to release earnings on Aug 1, currently has an Earnings ESP of +0.38% and a Zacks Rank of 2.
The consensus estimate for ETN’s earnings for the second quarter is pegged at $2.11 per share. The company has a trailing four-quarter surprise of 2.5%, on average.
Illinois Tool Works (ITW - Free Report) , set to release earnings on Aug 1, has an Earnings ESP of +0.54% and sports a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for ITW’s second-quarter earnings is pegged at $2.36 per share, suggesting a year-over-year improvement of 0.8%. The company has a trailing four-quarter surprise of 2.1%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.