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What's in Store for Terex Corporation (TEX) in Q1 Earnings?

Zacks Equity Research

Terex Corporation TEX is set to release first-quarter 2019 results on Apr 30, before the opening bell.

Past-Quarter Performance

The company’s fourth-quarter 2018 adjusted earnings and revenues surged 55% and 16%, respectively, on a year-over-year basis. The figures also beat their respective Zacks Consensus Estimate.

Notably, the company’s earnings surpassed the Zacks Consensus Estimate in three of the last four quarters, with an average positive earnings surprise of 14.77%.

Let's see how things are shaping up prior to this announcement.

Terex Corporation Price and EPS Surprise

 

Terex Corporation Price and EPS Surprise

Terex Corporation price-eps-surprise | Terex Corporation Quote

Earnings Whispers

Our proven model provides some idea on the stocks that are about to release their earnings results. Per the model, a stock needs to have a combination of a positive Earnings ESP  and a Zacks Rank #1 (Strong Buy), 2 (Buy), or at least 3 (Hold) for a likely earnings beat.

You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

That is not the case here as we will see below.

Earnings ESP:  Terex has an Earnings ESP of -1.37%.

Zacks Rank: The company carries a Zacks Rank #1, which when combined with negative ESP makes surprise prediction difficult.

It should be noted that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.

Factors at Play

In the last reported quarter, Terex’s backlog grew year over year across every segment and led to year-over-year improvement of 19% in total backlog for the company. The Aerial Work Platforms segment entered 2019 with a backlog of $1.1 billion, up 21% from the prior-year quarter. The segment continues to gain from strong global markets, operational execution and innovative new products. This in turn will impact the to-be-reported quarter’s results.

Backlog soared 55% year over year in the Material Processing segment, reflecting strong market momentum. A robust backlog, rising global demand for crushing and screening, equipment spurred by economic growth, construction activity and aggregate consumption, bodes well for the segment. Demand for Fuchs, material handlers and broad line of environmental products continues to rise in global markets which are likely to aid the segment in the upcoming quarterly release.

Consequently, improving backlog, along with an impressive global market environment, positions Terex well for first-quarter 2019. However, higher input costs, including tariffs, and foreign-exchange headwinds are expected to hurt the company’s first-quarter results. Nevertheless, the company is likely to benefit from the continued implementation of Execute to Win initiatives in the to-be-reported quarter.

The first-quarter Zacks Consensus Estimate for total sales of $1.14 billion, indicating a decline of 9.54% from the prior-year quarter.The Zacks Consensus Estimate for earnings is pegged at 61 cents, suggesting growth of 10.9% from the year-ago reported figure.

Price Performance


Shares of Terex have dropped 11.3% in the past year, compared with the industry’s decline of 6.4%.

Stocks to Consider

Here are a few companies that you may want to consider as our model shows these have the right combination of elements to post an earnings beat this quarter:

Sun Hydraulics Corporation SNHY has an Earnings ESP of +1.05% and a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.

Regal Beloit Corporation RBC has an Earnings ESP of +2.13% and a Zacks Rank #3.

Zebra Technologies Corporation ZBRA has an Earnings ESP of +3.76% and a Zacks Rank #3.

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Terex Corporation (TEX) : Free Stock Analysis Report
 
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