Astec (ASTE) Q4 Earnings Lags Estimates, Revenues Up Y/Y
Astec Industries, Inc. ASTE reported fourth-quarter 2021 adjusted loss per share of 3 cents, missing the Zacks Consensus Estimate of earnings of 1 cent. The company reported adjusted earnings per share (EPS) of 56 cents in the prior-year quarter.
Including one-time items, the company reported a loss per share of 40 cents in the quarter under review against earnings of 67 cents per share in the year-ago quarter.
Revenues & Backlog
Astec’s revenues increased 12.1% year over year to $268 million in the quarter under review. The top line came in line with the Zacks Consensus Estimate. Domestic sales were up 18.2% year over year on pricing initiatives, stronger asphalt plant and concrete plant sales as well as increased aftermarket parts sales. International sales declined 6.8% in the fourth quarter owing to lower equipment sales, partly offset by increased aftermarket parts sales.
Given strong demand, Astec achieved a record backlog of $763 million in 2021, suggesting a year-over-year surge of 111.5%. Domestic backlog climbed 123% year over year to $627 million, while international backlog increased 69.7% to $136 million.
Astec Industries, Inc. Price, Consensus and EPS Surprise
Astec Industries, Inc. price-consensus-eps-surprise-chart | Astec Industries, Inc. Quote
Operating Performance
Adjusted cost of sales climbed 17.5% year over year to $214 million in the fourth quarter. Adjusted gross profit was $54 million compared with the year-ago quarter’s $57 million. Adjusted gross margin contracted to 20.1% from the year-ago quarter’s 23.8%.
Adjusted selling, general, administrative and engineering (SG&A) increased 27% year over year to around $47 million. The company reported an adjusted operating income of $0.8 million, reflecting a year-over-year slump of 95%.
The adjusted operating margin was 0.3% compared with 6.6% in the prior-year quarter. The 630-basis point contraction was caused by manufacturing challenges resulting from supply chain and logistics disruptions as well as pandemic-induced labor restrictions and inflationary cost pressure, higher costs related to centralization and infrastructure efforts associated with the company’s ongoing transformation initiatives and a legal contingency.
Adjusted EBITDA was $8.1 million in the reported quarter, down 65% from the year-ago quarter. Adjusted EBITDA margin was 3%, reflecting a 680 basis points contraction from the prior-year quarter.
Segment Performance
Revenues in the Infrastructure Solutions segment were up 14% to $190 million from the year-ago quarter’s levels. The segment’s adjusted gross profit was $36.1 million compared with the prior-year quarter’s $39.5 million.
Materials Solutions segment’s total revenues were $78 million in the quarter under review, reflecting an increase of 8.5% year over year. The segment’s adjusted gross profit was $16.4 million, down 1.3% year over year.
Financial Position
Astec ended 2021 with cash and cash equivalents of $134.4 million compared with $158.6 million at 2020-end. At the end of 2021, the company’s long-term debt was $0.2 million compared with $0.4 million at the end of 2020.
2021 Performance
Astec reported an adjusted EPS of $1.47 in 2021 compared with $2.38 reported in the prior year. Earnings missed the Zacks Consensus Estimate of $1.51. Including one-time items, the bottom line came in at 78 cents per share compared with $2.05 reported in 2020.
Sales were down 7% year over year to $1.09 billion. The top line missed the Zacks Consensus Estimate of $1.10 billion.
Price Performance
Astec’s shares have declined 29.4% in the past year compared with the industry's loss of 11.3%.
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Zacks Rank & Stocks to Consider
Astec currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the Industrial Products sector include Applied Industrial Technologies, Inc. AIT, Dover Corporation DOV and Silgan Holdings Inc. SLGN. While AIT sports a Zacks Rank #1 (Strong Buy), DOV and SLGN carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Applied Industrial Technologies reported adjusted EPS of $1.46 in second-quarter fiscal 2022 (ended Dec 31, 2020), up 49% year on year and beating the Zacks Consensus Estimate of $1.09. AIT has a trailing four-quarter earnings surprise of 27.9%, on average.
Applied Industrial Technologies has an expected earnings growth rate of 24.8% for fiscal 2022. The Zacks Consensus Estimate for fiscal year earnings has moved up 9.4% in the past 60 days. AIT’s shares have appreciated 20.2% in a year.
Dover’s fourth-quarter 2021 adjusted EPS increased 15% year over year to $1.78, beating the Zacks Consensus Estimate of $1.66. DOV has a trailing four-quarter earnings surprise of 12.3%, on average.
Dover has an estimated earnings growth rate of around 12.7% for 2022. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 5%. DOV’s shares have rallied around 32.1% in a year.
Silgan Holdings’ fourth-quarter 2021 adjusted EPS increased 32% year over year to a record 79 cents, beating the Zacks Consensus Estimate of 73 cents. SLGN has a trailing four-quarter earnings surprise of 3.8%, on average.
Silgan has a projected earnings growth rate of 13.5% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved north by 3% in the past 60 days. In a year, SLGN has appreciated 11.7%.
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