We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Astec (ASTE) Q2 Earnings and Revenues Surpass Estimates
Read MoreHide Full Article
Astec Industries, Inc.’s (ASTE - Free Report) second-quarter 2020 adjusted earnings per share of 67 cents beat the Zacks Consensus Estimate of 12 cents by a wide margin. The bottom line also improved 81% from the prior-year quarter. The better-than-expected results were driven by the company’s restructuring initiatives taken in 2019 and 2020, which offset the impact of lower revenues amid the coronavirus crisis.
Including one-time items, the company reported earnings per share of 41 cents in the quarter under review, down 60% from $1.03 in the year-ago quarter.
Astec reported revenues of $265 million in the quarter, down 6.8% from the year-ago quarter’s adjusted figure of $285 million. However, the top line surpassed the Zacks Consensus Estimate of $236 million. Including $20 million from sale of a wood pellet plant in the prior-year quarter, revenues in the second quarter of 2020 declined 13%. In the reported quarter, the company’s both domestic and international sales declined 10% and 25%, respectively, on a year-over-year basis owing to COVID-19-related disruptions.
Astec Industries, Inc. Price, Consensus and EPS Surprise
Cost of sales declined 8% year over year to $204 million. Adjusted gross profit was $62 million, down 3% from the year-ago quarter figure of $63 million. Gross margin was 23.2% in the reported quarter compared with the prior-year quarter’s 22.2%.
Selling, general, administrative and engineering (SG&A) decreased 19% year over year to $43 million, driven by reductions in consulting fees, travel and employee expenses. Adjusted operating profit for the quarter under review was $18.8 million, which improved 78% from the prior-year quarter’s $10.5 million. Adjusted operating margin was 7.1% compared with 3.7% in the prior-year quarter courtesy of transformation initiatives put in place beginning in late 2019.
Adjusted EBITDA was $25 million in the reported quarter, up 47% from $17 million a year ago. Adjusted EBITDA margin was 9.5% compared with 6.0% in the prior-year quarter. Despite lower sales, the company’s restructuring initiatives benefited margins in the quarter.
Segment Performance
Revenues for the Infrastructure Solutions segment increased 2% to $182 million from the year-ago quarter. The segment reported an adjusted EBITDA of $22.6 million compared with $12.5 million in the prior-year quarter.
Materials Solutions segment’s total revenues decreased 21% year over year to $83 million. The segment reported an adjusted EBITDA of $12.1 million, reflecting year-over-year increase of 7%.
Financial Position
Astec reported cash and cash equivalents of $119.8 million as of Jun 30, 2020, up from $24.9 million as of Jun 30, 2019. As of second-quarter 2020-end, total debt was $1.4 million. The company has available liquidity in excess of $270.6 million as of Mar 31, 2020.
The company’s total backlog fell 26% year over year to $182 million as of Jun 30, 2020. Orders in Materials and Infrastructure Solutions segments were down 17.3% and 30.9%, respectively. While domestic backlog slumped 21% year over year to $128 million, international backlog plunged 37% to $54 million.
Astec is undertaking initiatives to counter the financial and operational impacts of COVID-19. These steps include reducing expenses, conserving cash, suspending hiring, except for critical positions, lowering discretionary spending and overall headcount reduction.
Share Price Performance
Astec’s shares have gained 23.7% in the three months, compared with the industry‘s growth of 20.8%.
Silgan has a projected earnings growth rate of 28.7% for the current year. The company’s shares have gained 13% in the past three months.
IIVI has an estimated earnings growth rate of 29% for the ongoing year. The company’s shares have rallied 46% in three months’ time.
SiteOne Landscape Supply has an expected earnings growth rate of 6.2% for 2020. The stock has surged 37% over the past three months.
Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.3% per year.
These 7 were selected because of their superior potential for immediate breakout.
Image: Bigstock
Astec (ASTE) Q2 Earnings and Revenues Surpass Estimates
Astec Industries, Inc.’s (ASTE - Free Report) second-quarter 2020 adjusted earnings per share of 67 cents beat the Zacks Consensus Estimate of 12 cents by a wide margin. The bottom line also improved 81% from the prior-year quarter. The better-than-expected results were driven by the company’s restructuring initiatives taken in 2019 and 2020, which offset the impact of lower revenues amid the coronavirus crisis.
Including one-time items, the company reported earnings per share of 41 cents in the quarter under review, down 60% from $1.03 in the year-ago quarter.
Astec reported revenues of $265 million in the quarter, down 6.8% from the year-ago quarter’s adjusted figure of $285 million. However, the top line surpassed the Zacks Consensus Estimate of $236 million. Including $20 million from sale of a wood pellet plant in the prior-year quarter, revenues in the second quarter of 2020 declined 13%. In the reported quarter, the company’s both domestic and international sales declined 10% and 25%, respectively, on a year-over-year basis owing to COVID-19-related disruptions.
Astec Industries, Inc. Price, Consensus and EPS Surprise
Astec Industries, Inc. price-consensus-eps-surprise-chart | Astec Industries, Inc. Quote
Cost of sales declined 8% year over year to $204 million. Adjusted gross profit was $62 million, down 3% from the year-ago quarter figure of $63 million. Gross margin was 23.2% in the reported quarter compared with the prior-year quarter’s 22.2%.
Selling, general, administrative and engineering (SG&A) decreased 19% year over year to $43 million, driven by reductions in consulting fees, travel and employee expenses. Adjusted operating profit for the quarter under review was $18.8 million, which improved 78% from the prior-year quarter’s $10.5 million. Adjusted operating margin was 7.1% compared with 3.7% in the prior-year quarter courtesy of transformation initiatives put in place beginning in late 2019.
Adjusted EBITDA was $25 million in the reported quarter, up 47% from $17 million a year ago. Adjusted EBITDA margin was 9.5% compared with 6.0% in the prior-year quarter. Despite lower sales, the company’s restructuring initiatives benefited margins in the quarter.
Segment Performance
Revenues for the Infrastructure Solutions segment increased 2% to $182 million from the year-ago quarter. The segment reported an adjusted EBITDA of $22.6 million compared with $12.5 million in the prior-year quarter.
Materials Solutions segment’s total revenues decreased 21% year over year to $83 million. The segment reported an adjusted EBITDA of $12.1 million, reflecting year-over-year increase of 7%.
Financial Position
Astec reported cash and cash equivalents of $119.8 million as of Jun 30, 2020, up from $24.9 million as of Jun 30, 2019. As of second-quarter 2020-end, total debt was $1.4 million. The company has available liquidity in excess of $270.6 million as of Mar 31, 2020.
The company’s total backlog fell 26% year over year to $182 million as of Jun 30, 2020. Orders in Materials and Infrastructure Solutions segments were down 17.3% and 30.9%, respectively. While domestic backlog slumped 21% year over year to $128 million, international backlog plunged 37% to $54 million.
Astec is undertaking initiatives to counter the financial and operational impacts of COVID-19. These steps include reducing expenses, conserving cash, suspending hiring, except for critical positions, lowering discretionary spending and overall headcount reduction.
Share Price Performance
Astec’s shares have gained 23.7% in the three months, compared with the industry‘s growth of 20.8%.
Zacks Rank & Stocks to Consider
Astec currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Industrial Products sector include Silgan Holdings, Inc. (SLGN - Free Report) , IIVI Incorporated and SiteOne Landscape Supply, Inc. (SITE - Free Report) . All of these stocks sport a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Silgan has a projected earnings growth rate of 28.7% for the current year. The company’s shares have gained 13% in the past three months.
IIVI has an estimated earnings growth rate of 29% for the ongoing year. The company’s shares have rallied 46% in three months’ time.
SiteOne Landscape Supply has an expected earnings growth rate of 6.2% for 2020. The stock has surged 37% over the past three months.
Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.3% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>