Lifting and material handling equipment company Terex (NYSE: TEX) will be reporting results this Wednesday before market open. Here’s what to expect.
Terex missed analysts’ revenue expectations by 2% last quarter, reporting revenues of $1.39 billion, up 14.3% year on year. It was a slower quarter for the company, with full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ organic revenue estimates.
Is Terex a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Terex’s revenue to grow 5.3% year on year to $1.31 billion, improving from the 1.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.11 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Terex has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Terex’s peers in the heavy machinery segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Caterpillar delivered year-on-year revenue growth of 18%, beating analysts’ expectations by 7.8%, and Greenbrier reported a revenue decline of 19.4%, topping estimates by 7.7%. Caterpillar traded up 2.2% following the results while Greenbrier was down 10.3%.
Read our full analysis of Caterpillar’s results here and Greenbrier’s results here.
There has been positive sentiment among investors in the heavy machinery segment, with share prices up 8.2% on average over the last month. Terex is up 1.6% during the same time and is heading into earnings with an average analyst price target of $64.75 (compared to the current share price of $61.91).
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