Lifting and material handling equipment company Terex (NYSE: TEX) will be announcing earnings results this Friday morning. Here’s what to expect.
Terex beat analysts’ revenue expectations last quarter, reporting revenues of $1.32 billion, up 6.2% year on year. It was a mixed quarter for the company, with full-year EBITDA guidance exceeding analysts’ expectations but a significant miss of analysts’ EBITDA estimates.
Is Terex a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Terex’s revenue to grow 37.4% year on year, a reversal from the 4.9% decrease it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing in majority downward revisions over the last 30 days. Terex has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Terex’s peers in the heavy machinery segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Federal Signal delivered year-on-year revenue growth of 34.9%, beating analysts’ expectations by 8%, and PACCAR reported a revenue decline of 8.9%, falling short of estimates by 0.9%. PACCAR traded down 7.1% following the results.
Read our full analysis of Federal Signal’s results here and PACCAR’s results here.
There has been positive sentiment among investors in the heavy machinery segment, with share prices up 8.6% on average over the last month. Terex is up 2.7% during the same time and is heading into earnings with an average analyst price target of $75.88 (compared to the current share price of $60.70).
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