Astec (ASTE) Q2 Earnings Beat Estimates, Revenues Rise Y/Y
Astec Industries, Inc. ASTE reported second-quarter 2023 adjusted earnings per share of 87 cents, beating the Zacks Consensus Estimate of earnings of 59 cents. The company reported adjusted earnings of 19 cents in the year-ago quarter.
Including one-time items, the company reported earnings of 58 cents in the quarter under review against a loss per share of 17 cents in the year-ago quarter.
Revenues & Backlog
Astec’s revenues increased 10% year over year to a record $350 million in the quarter under review. The top line beat the Zacks Consensus Estimate of $348 million. The upside was driven by changes in volume, pricing and mix.
Domestic sales were up 15.3% year over year, while International sales declined 8.9% in the quarter.
Astec reported a backlog of $689 million at the second-quarter end, suggesting a year-over-year decline of 17.7%. Domestic backlog fell 16.6% year over year to $588 million, while international backlog declined 24% to $107 million.
We expected the total backlog to be $1,192 million in the quarter.
Astec Industries, Inc. Price, Consensus and EPS Surprise
Astec Industries, Inc. price-consensus-eps-surprise-chart | Astec Industries, Inc. Quote
Operating Performance
Cost of sales increased 4.6% year over year to $267 million in the second quarter. The gross profit was $83 million compared with the year-ago quarter’s $63 million. The gross margin moved up to 23.7% from the year-ago quarter’s 19.8%.
Selling, general, administrative and engineering (SG&A) increased 5.4% year over year to $65 million. The company reported an adjusted operating income of $26.2 million, reflecting a year-over-year surge of 194.4%. The adjusted operating margin was 7.5% compared with 2.8% in the prior-year quarter.
Adjusted EBITDA was $32.2 million in the reported quarter, up 143.9% from the year-ago quarter. The adjusted EBITDA margin was 9.2%, up from the prior-year quarter’s 4.1%.
Segmental Performance
Revenues in the Infrastructure Solutions segment were up 4.1% to $218 million from the year-ago quarter. We predicted the segment’s sales to be $227 million. The segment’s adjusted EBITDA was $26.7 million, up 67.9% from the prior-year quarter’s actual.
The Materials Solutions segment’s total revenues were $130.2 million in the quarter under review, reflecting a year-over-year increase of 21.2%. We expected sales of $114 million for the segment. The segment’s adjusted EBITDA was $18.3 million, up 92.6% year over year.
Financial Position
Astec ended the second quarter of 2023 with cash and cash equivalents of $44.5 million compared with $66 million at the 2022-end. At the end of second-quarter 2023, the company’s long-term debt was $62 million compared with $78 million at the end of 2022.
Price Performance
Astec’s shares have gained 24.7% in the past year compared with the industry's growth of 48.2%.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
Astec currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks from the Industrial Products sector are Worthington Industries, Inc. WOR, The Manitowoc Company, Inc. MTW and Terex Corporation TEX. WOR and MTW sport a Zacks Rank #1 at present, and TEX has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Worthington Industries has an average trailing four-quarter earnings surprise of 14.9%. The Zacks Consensus Estimate for WOR’s fiscal 2023 earnings is pegged at $5.65 per share. The consensus estimate for 2023 earnings has moved north by 22.6% in the past 60 days. Its shares gained 43.4% in the last year.
Manitowoc has an average trailing four-quarter earnings surprise of 256.3%. The Zacks Consensus Estimate for MTW’s 2023 earnings is pegged at $1.12 per share. The consensus estimate for 2023 earnings has moved 7.8% north in the past 60 days. MTW’s shares gained 54.8% in the last year.
The Zacks Consensus Estimate for Terex’s 2023 earnings per share is pegged at $1.61. Estimates were unchanged in the last 60 days. The company has a trailing four-quarter average earnings surprise of 27.1%. TEX gained 84.7% in the last year.
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