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Here's Why You Should Retain Terex (TEX) in Your Portfolio
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Terex Corporation (TEX - Free Report) has been gaining from strong demand and improved volumes, which is evident from year-over-year growth in earnings over the past 13 quarters. TEX’s pricing actions and efforts to cut down costs have also aided its results.
Let us delve deeper and analyze the factors that make this current Zacks Rank #3 (Hold) company worth holding on to at present.
Healthy Demand Drives Q1 Results: Terex reported first-quarter adjusted earnings per share of $1.60, which marks a year-over-year improvement of 5.5%. Revenues increased 4.6% year over year to $1.29 billion, The upside was driven by healthy demand across multiple businesses.
Positive Earnings Surprise History: The company has an average trailing four-quarter positive earnings surprise of 16.9%.
Optimistic Growth Projections: The Zacks Consensus Estimate for the company’s 2024 earnings has moved 2% upward over the past 30 days and is pegged at $7.09 per share. The consensus mark for 2025 earnings has gone up 3% over the past 30 days to $7.22 per share.
Upbeat FY24 Outlook: Terex expects earnings per share in the range of $6.95-$7.35 in 2024. The company reported adjusted earnings per share of $7.06 in 2023. Terex expects sales to be between $5.2 billion and $5.4 billion. The company reported sales of $5.15 billion in 2023. Backed by upbeat first-quarter results and its outlook for 2024, Terex's shares have gained 1.1% in the past month against the industry’s 0.7% decline.
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Solid Backlog Levels to Support Revenues: The company has been delivering year-over-year growth in earnings over the past three years, driven by the strong demand for its products across multiple businesses and major geographies. TEX’s backlog was $3.1 billion at the end of the first quarter. The figure remains significantly above historical levels.
Robust backlog and strong end-market demand are expected to support its top-line performance in the forthcoming quarters. Increased spending from the Infrastructure Bill is expected to be a major catalyst for Terex.
Strategic Initiatives Continue to Bear Fruit: The company continues to progress well on its “Execute, Innovate, Grow” strategy. In sync with this, it has been investing in innovative products, digital innovation, the expansion of manufacturing facilities and acquisitions.
Solid Balance Sheet: As of Mar 31, 2024, the company had $866 million of total available liquidity and a net leverage of 0.5X. It expects to generate free cash flow in the range of $325-$375 million in 2024 compared with a free cash flow of $366 million in 2023. Terex used $35 million in capital expenditure and growth investments in the first quarter. It returned $2.7 million to shareholders in the quarter. The company has $129 million authorized for share repurchase. Terex’s Board declared a dividend of 17 cents per share in the first quarter. In 2023, the company increased the dividend twice, raising it by a total of 31% from the previous 13 cents to the current 17 cents.
Applied Industrial reported earnings per share of $2.48 in the first quarter, up 4% year over year. The bottom line beat the Zacks Consensus Estimate of $2.40. The company has a trailing four-quarter average earnings surprise of 8.2%. The consensus estimate for AIT’s fiscal 2024 earnings has moved up 1% in the past 30 days. The estimate indicates year-over-year growth of 10%. The stock has risen 7% in the past month.
Kaiser Aluminium’s first-quarter earnings per share increased 3% year over year to $1.02. The bottom line beat the Zacks Consensus Estimate of 58 cents. The consensus estimate for KALU’s 2024 earnings has increased 13% in the past 30 days. The estimate suggests year-over-year growth of 50.4%. The company has a trailing four-quarter average earnings surprise of 136.83%. Shares of Kaiser Aluminium have risen 12% in the past month.
Northwest Pipe’s first-quarter earnings climbed 126% year over year to 52 cents per share, surpassing the Zacks Consensus Estimate of 34 cents. NWPX has a trailing four-quarter average earnings surprise of 11.48%.
The consensus estimate for Northwest Pipe Company’s fiscal 2024 earnings indicates year-over-year growth of 17.7%. The estimate has moved up 6% in the past 30 days. The company’s shares have gained 11.9% in the past month.
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Here's Why You Should Retain Terex (TEX) in Your Portfolio
Terex Corporation (TEX - Free Report) has been gaining from strong demand and improved volumes, which is evident from year-over-year growth in earnings over the past 13 quarters. TEX’s pricing actions and efforts to cut down costs have also aided its results.
Let us delve deeper and analyze the factors that make this current Zacks Rank #3 (Hold) company worth holding on to at present.
Healthy Demand Drives Q1 Results: Terex reported first-quarter adjusted earnings per share of $1.60, which marks a year-over-year improvement of 5.5%. Revenues increased 4.6% year over year to $1.29 billion, The upside was driven by healthy demand across multiple businesses.
Positive Earnings Surprise History: The company has an average trailing four-quarter positive earnings surprise of 16.9%.
Optimistic Growth Projections: The Zacks Consensus Estimate for the company’s 2024 earnings has moved 2% upward over the past 30 days and is pegged at $7.09 per share. The consensus mark for 2025 earnings has gone up 3% over the past 30 days to $7.22 per share.
Upbeat FY24 Outlook: Terex expects earnings per share in the range of $6.95-$7.35 in 2024. The company reported adjusted earnings per share of $7.06 in 2023. Terex expects sales to be between $5.2 billion and $5.4 billion. The company reported sales of $5.15 billion in 2023. Backed by upbeat first-quarter results and its outlook for 2024, Terex's shares have gained 1.1% in the past month against the industry’s 0.7% decline.
Image Source: Zacks Investment Research
Solid Backlog Levels to Support Revenues: The company has been delivering year-over-year growth in earnings over the past three years, driven by the strong demand for its products across multiple businesses and major geographies. TEX’s backlog was $3.1 billion at the end of the first quarter. The figure remains significantly above historical levels.
Robust backlog and strong end-market demand are expected to support its top-line performance in the forthcoming quarters. Increased spending from the Infrastructure Bill is expected to be a major catalyst for Terex.
Strategic Initiatives Continue to Bear Fruit: The company continues to progress well on its “Execute, Innovate, Grow” strategy. In sync with this, it has been investing in innovative products, digital innovation, the expansion of manufacturing facilities and acquisitions.
Solid Balance Sheet: As of Mar 31, 2024, the company had $866 million of total available liquidity and a net leverage of 0.5X. It expects to generate free cash flow in the range of $325-$375 million in 2024 compared with a free cash flow of $366 million in 2023. Terex used $35 million in capital expenditure and growth investments in the first quarter. It returned $2.7 million to shareholders in the quarter. The company has $129 million authorized for share repurchase. Terex’s Board declared a dividend of 17 cents per share in the first quarter. In 2023, the company increased the dividend twice, raising it by a total of 31% from the previous 13 cents to the current 17 cents.
Stocks to Consider
Some better-ranked stocks from the Industrial Products sector are Applied Industrial Technologies, Inc. (AIT - Free Report) , Kaiser Aluminum (KALU - Free Report) and Northwest Pipe Company (NWPX - Free Report) . Each of these stocks currently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Applied Industrial reported earnings per share of $2.48 in the first quarter, up 4% year over year. The bottom line beat the Zacks Consensus Estimate of $2.40. The company has a trailing four-quarter average earnings surprise of 8.2%. The consensus estimate for AIT’s fiscal 2024 earnings has moved up 1% in the past 30 days. The estimate indicates year-over-year growth of 10%. The stock has risen 7% in the past month.
Kaiser Aluminium’s first-quarter earnings per share increased 3% year over year to $1.02. The bottom line beat the Zacks Consensus Estimate of 58 cents. The consensus estimate for KALU’s 2024 earnings has increased 13% in the past 30 days. The estimate suggests year-over-year growth of 50.4%. The company has a trailing four-quarter average earnings surprise of 136.83%. Shares of Kaiser Aluminium have risen 12% in the past month.
Northwest Pipe’s first-quarter earnings climbed 126% year over year to 52 cents per share, surpassing the Zacks Consensus Estimate of 34 cents. NWPX has a trailing four-quarter average earnings surprise of 11.48%.
The consensus estimate for Northwest Pipe Company’s fiscal 2024 earnings indicates year-over-year growth of 17.7%. The estimate has moved up 6% in the past 30 days. The company’s shares have gained 11.9% in the past month.