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Astec (ASTE) Q4 Earnings: What To Expect

ASTE Cover Image

Construction equipment company Astec (NASDAQ: ASTE) will be reporting earnings this Wednesday before market open. Here’s what to look for.

Astec beat analysts’ revenue expectations last quarter, reporting revenues of $350.1 million, up 20.1% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

Is Astec a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Astec’s revenue to grow 4.2% year on year, slowing from the 6.5% increase it recorded in the same quarter last year.

Astec Total Revenue

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. Astec has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at Astec’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 Terex reported revenues up 6.2%, topping estimates by 0.8%. Caterpillar traded up 2.2% following the results while Terex was also up 10.7%.

Read our full analysis of Caterpillar’s results here and Terex’s results here.

There has been positive sentiment among investors in the heavy machinery segment, with share prices up 4.3% on average over the last month. Astec is up 19.8% during the same time and is heading into earnings with an average analyst price target of $56.50 (compared to the current share price of $57.91).

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