Astec Inds Inc Down 23.75% To $30.53 After Earnings Miss

Wednesday, November 1, 2023 - Astec Inds Inc (ASTE) reported downside earnings and revenues today.

Wall Street earnings per share (EPS) projections for Astec Inds Inc were at $0.62. The company missed those estimates with an EPS loss of $0.01 per share. The loss of $0.01 per share (which represents a -102% EPS surprise) led to the company's profits falling 104% compared to last year when the firm reported an EPS of $0.28. The decline in Astec Inds Inc's annual growth rate represents how the business isn't performing well amid current economic conditions.

Analyst projections for Astec Inds Inc revenue came in at a consensus of $332.8 million. Third-Quarter revenues missed estimates for $303.1 million by $29.7 million (9%). The company achieved negative 4% growth year-over-year compared to the firm's revenue of $315.2 million from the year-ago quarter. The lower earnings growth relative to revenue signals Astec Inds Inc has not been able to improve its profit margin.

The stock is down 23.75% to $30.53 after the report.

Astec Inds Inc's profit margins took a hit as earnings fell at a faster pace than revenues.

The average recommendation from Wall Street analysts was a Buy which may get revised based on this new data.

Trading in the five days leading up to the report earned Astec Inds Inc a Bearish Sentiment Rank from InvestorsObserver.

Astec Inds Inc has performed a little below average during the past few months. Before the report, Astec Inds Inc received a Long-Term Technical Rank by InvestorsObserver of 30, putting it in the bottom half of stocks. The firm was recently trading at a 52-week high of $56.33 on September 1, 2023 and set a 52-week low on January 6, 2023 at $35.73.

Astec Industries Inc designs and manufactures equipment and components used primarily in road construction and other development activities. Its products are used through the entire process of building roads, from mining and crushing materials to creating the road surface. The company manufactures a line of plants, pavers, vehicles, and machines to mix and transform materials into construction components. It has two operating segments: infrastructure solutions (the largest in terms of revenue) and materials solutions. The majority of sales are derived from the United States. Its customers are asphalt producers, highway and heavy equipment contractors, ready mix concrete producers, demolition recycling markets, sand and gravel producers, open mine operators, quarry operators, and others.