Terex (NYSE:TEX) Announces Earnings Results, Beats Estimates By $0.08 EPS

Terex (NYSE:TEX) issued its quarterly earnings data on Wednesday. The industrial products company reported $1.50 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.42 by $0.08, FiscalAI reports. Terex had a net margin of 2.64% and a return on equity of 11.79%. The firm had revenue of $2.20 billion during the quarter, compared to analysts’ expectations of $2.16 billion. During the same quarter in the previous year, the company earned $1.50 earnings per share. The business’s revenue for the quarter was up 58.4% on a year-over-year basis.

Here are the key takeaways from Terex’s conference call:

• Third-quarter results improved year over year, with pro forma sales up 12% to $2.2 billion, adjusted EBITDA up 14% to $286 million, and adjusted EBITDA margin expanding to 13%. Operating cash flow reached $241 million and free cash flow was $209 million.
• Demand indicators strengthened significantly, with pro forma bookings up 53% and backlog reaching $7 billion. Materials Processing posted a two-year-high backlog, Specialty Vehicles continued to see strong fire-apparatus demand, and Aerials bookings surged on large infrastructure projects.
• Terex reduced its full-year outlook to $8.0 billion-$8.2 billion of sales and $930 million-$960 million of adjusted EBITDA, citing segment mix, higher freight costs, Utilities ramp-up inefficiencies, and the Capacity and LayMor divestitures. Environmental Solutions sales are now expected to be approximately flat, while its margins remain pressured by the Waukesha facility ramp.
• Free cash flow guidance was raised to $360 million-$400 million, supported by working-capital efficiency and lower capital spending expectations. The board also authorized an additional $500 million of share repurchases, bringing total available authorization to $611 million.
• The Aerials separation process has progressed to active discussions with multiple strategic counterparties, but Terex provided no details on potential buyers or timing. Management said it remains focused on maximizing value for shareholders while continuing to improve the Genie business.

Terex Stock Performance

Shares of Terex stock opened at $56.08 on Friday. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.76 and a quick ratio of 0.93. The firm has a market cap of $6.41 billion, a price-to-earnings ratio of 28.32, a price-to-earnings-growth ratio of 1.04 and a beta of 1.47. The stock’s 50-day moving average is $57.21 and its 200-day moving average is $61.88. Terex has a one year low of $41.70 and a one year high of $74.69.

Terex Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, December 18th. Stockholders of record on Monday, November 9th will be issued a $0.17 dividend. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date is Monday, November 9th. Terex’s payout ratio is 34.34%.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the stock. Citigroup decreased their price target on shares of Terex from $80.00 to $65.00 and set a “buy” rating for the company in a report on Monday, October 12th. Truist Financial reaffirmed a “buy” rating and set a $87.00 price objective (up from $85.00) on shares of Terex in a research note on Thursday. Wall Street Zen lowered Terex from a “buy” rating to a “hold” rating in a report on Saturday, October 10th. JPMorgan Chase & Co. decreased their target price on Terex from $68.00 to $58.00 and set a “neutral” rating for the company in a research note on Thursday, October 8th. Finally, Wells Fargo & Company lowered their price target on Terex from $70.00 to $60.00 and set an “equal weight” rating for the company in a report on Monday. Two research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $74.73.

About Terex

Terex Corporation (NYSE:TEX) is a global manufacturer of equipment used in construction, infrastructure development, utilities, recycling and material processing. The company designs and produces machinery intended to help customers build, maintain and improve transportation networks, commercial sites, utility systems and industrial facilities.

Terex operates primarily through its Aerial Work Platforms and Materials Processing businesses. Its products include aerial lifts, telehandlers and other access equipment, as well as crushing, screening, conveying, washing, recycling and environmental-processing machinery.