Terex (NYSE:TEX) Issues Quarterly Earnings Results, Beats Expectations By $0.08 EPS

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

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 Price Performance

TEX traded down $0.47 during trading on Friday, hitting $56.08. 1,751,280 shares of the stock traded hands, compared to its average volume of 1,959,900. The company has a market cap of $6.30 billion, a price-to-earnings ratio of 28.32, a PEG ratio of 1.04 and a beta of 1.48. The business has a 50 day moving average price of $57.21 and a 200 day moving average price of $61.88. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.76 and a quick ratio of 0.92. Terex has a twelve month low of $41.70 and a twelve month high of $74.69.

Terex Dividend Announcement

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

Wall Street Analyst Weigh In

TEX has been the subject of a number of recent research reports. Morgan Stanley decreased their target price on Terex from $86.00 to $84.00 and set an “overweight” rating for the company in a report on Thursday. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Terex in a research report on Thursday, October 15th. Barclays increased their price target on Terex from $65.00 to $70.00 and gave the stock an “overweight” rating in a report on Monday, July 20th. Citigroup cut their price objective on Terex from $80.00 to $65.00 and set a “buy” rating on the stock in a report on Monday, October 12th. Finally, Truist Financial restated a “buy” rating and issued a $87.00 target price (up from $85.00) on shares of Terex in a research note on Thursday. Two research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating and five have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target 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.