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Astec (ASTE) Q1 Earnings Miss Estimates, Revenues Dip Y/Y

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Astec Industries, Inc. (ASTE - Free Report) reported first-quarter 2024 adjusted earnings per share of 34 cents, missing the Zacks Consensus Estimate of 87 cents. The bottom line also marked a 62% decline from earnings per share of 90 cents in the prior-year quarter.

Including one-time items, the company’s earnings of 15 cents per share in the quarter under review compared with earnings of 53 cents in the year-ago quarter.

Astec Industries, Inc. Price, Consensus and EPS Surprise

 

Astec Industries, Inc. Price, Consensus and EPS Surprise

Astec Industries, Inc. price-consensus-eps-surprise-chart | Astec Industries, Inc. Quote

Revenues & Backlog

Astec’s revenues decreased 11.1% year over year to $309 million in the quarter under review, driven by fewer conversions in the Materials Solutions group. The top line missed the Zacks Consensus Estimate of $349 million. Domestic sales were down 13.5% year over year and International sales were down 0.9%.

ASTE reported a backlog of $560 million in the first quarter of 2024, marking a year-over-year decline of 30%. Domestic backlog fell 36.2% year over year to $438 million, while international backlog was up 6.6% to $122 million.

Operating Performance

The cost of sales fell 10.2% year over year to $232 million in the first quarter. The gross profit was $77 million compared with the year-ago quarter’s $89 million. The adjusted gross margin was 24.9% compared with the year-ago quarter’s 25.6%.

Selling, general, administrative and engineering expenses increased 5.2% year over year to around $71 million. The company reported an adjusted operating income of $12 million, a decrease from $28.5 million in the prior year. The adjusted operating margin was 3.9% compared with 8.2% in the prior-year quarter.

Adjusted EBITDA was $18.9 million in the reported quarter, down from the year-ago quarter’s $35.2 million. The adjusted EBITDA margin was 6.1% compared with 10.1% in the previous year’s comparable quarter.

Segmental Performance

Revenues in the Infrastructure Solutions segment were up 6.2% to $202 million from the year-ago quarter. The Zacks Consensus Estimate for the segment’s net sales was $231 million. The segment’s adjusted EBITDA was $25.6 million compared with the prior-year quarter’s $28.5 million.

The Materials Solutions segment’s total revenues were $107 million in the quarter under review, marking a year-over-year decrease of 19.1%. The Zacks Consensus Estimate for the segment’s net sales was $120 million. The segment’s adjusted EBITDA was $5.3 million, down 63.7% year over year.

Financial Position

Astec ended the first quarter of 2024 with cash and cash equivalents of $58 million compared with $63 million at the end of fiscal 2023. At the end of the first quarter, the company’s long-term debt was $125 million compared with $72 million at the end of 2023. The company used $47 million in cash in operating activities compared with $19.2 million in the prior-year quarter.

Price Performance

Astec’s shares have lost 20.8% in the past year against the industry's 55.8% growth.

 

Zacks Investment Research
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Zacks Rank

ASTE currently carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Performances of Other Manufacturing Stocks

Caterpillar Inc. (CAT - Free Report) reported first-quarter 2024 adjusted earnings per share of $5.60, which beat the Zacks Consensus Estimate of $5.12 by a margin of 9%. The bottom-line figure marked a 14% year-over-year improvement.

The company reported first-quarter revenues of $15.8 billion, which missed the Zacks Consensus Estimate of $16.1 billion. The top line was flat with the year-ago quarter as favorable price realization was offset by lower volumes. Caterpillar witnessed lower sales of equipment to end users.

Terex Corporation (TEX - Free Report) reported first-quarter 2024 adjusted earnings per share of $1.60, which beat the Zacks Consensus Estimate of $1.37. The bottom line was flat year over year.

Revenues in the reported quarter increased 4.6% year over year to $1.29 billion, surpassing the Zacks Consensus Estimate of $1.23 billion. The year-over-year upside was driven by healthy demand across multiple businesses.

H&E Equipment Services, Inc. (HEES - Free Report) came out with first quarter 2024 earnings of 71 cents per share, missing the Zacks Consensus Estimate of 73 cents per share. The reported figure was flat with that recorded a year ago.

The company reported first-quarter revenues of $371 million, which beat the Zacks Consensus Estimate of $348 million. The top line increased 15.2% from the year-ago quarter.

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