Terex (TEX), beats Q4 earnings and revenue estimates
Terex (TEX), which beat the Zacks Consensus Estimate at $1.13 per Share, reported quarterly earnings of $1.34. This compares with earnings of $0.82 per shares a year ago. These numbers are adjusted to account for non-recurring items.
This quarter’s earnings report is an earnings surprise by 18.58%. It was expected that the machinery product maker would report earnings of $1.05 per shares quarter ago. However, earnings actually reached $1.20 per share, which is a surprise of 14.29%.
In the last four quarters, consensus EPS estimates were surpassed four times by the company.
Terex, which falls under the Zacks Manufacturing Construction and Mining Industry, saw revenues of $1.22 trillion for the quarter that ended December 2022. This is 11.06% higher than the Zacks Consensus Estimate. This compares with the year-ago revenues which were $990.1million. Over the past four quarters, the company has exceeded consensus revenue estimates four more times.
The stock’s sustainability will be determined based on the recent earnings numbers. Future earnings expectations will also depend on management’s comments on the earnings calls.
Terex shares have added about 20.5% since the beginning of the year versus the S&P 500’s gain of 7.3%.
What’s next for Terex
Investors are asking themselves the following question: How will Terex perform in the future?
Although there aren’t easy answers to this question, one reliable indicator that investors can use is the company’s earnings outlook. This includes the current consensus earnings outlook for the upcoming quarter(s), and how they have changed recently.
Empirical research shows strong correlations between stock movements in the near-term and trends in earnings estimates revisions. Investors have two options: track these revisions on their own or rely upon a proven rating tool such as the Zacks Rank. This rating tool has a strong track record in harnessing the power earnings estimate revisions.
Terex has mixed estimates in advance of the earnings report. The company’s latest earnings report could have an impact on the direction and magnitude estimates, but the current Zacks Rank (3/3) for the stock is a Hold. In the short term, the stock is expected to perform in line the market. Here is the complete Zacks #1 rank (Strong Buy), stock list.
It will be interesting for us to see how the estimates for the next quarters and the current fiscal year change over the coming days. Current consensus EPS estimates for the next quarter are $1.01 on $1.08 Billion in revenues and $4.77 upon $4.53 Billion in revenues for this fiscal year.
Investors should consider the possibility that the outlook of the industry could have an impact on the stock’s performance. Manufacturing – Construction and Mining are currently among the top 17% of all 250 plus Zacks industry ranked. Our research has shown that the top 50% Zacks-ranked Industries outperforms the bottom 50% by more than 2 to 1.
Astec Industries (ASTE), another stock in the same sector, has not yet reported results for the quarter ended Dec 2022. They are expected to release the results on March 1.
In its next report, this maker of equipment used in building, paving and mining will post quarterly earnings at $0.38 per share. This is a +1366.7% increase year-overyear. The consensus EPS estimate has been adjusted to reflect a decrease of 4.1% in EPS estimates over the past 30 days. It is now at the current level.
Astec Industries revenues are expected at $312.01million, an increase of 16.5% over the previous quarter.
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