Astec Industries Earnings: Here’s Why Shares are Up Now

Astec Industries, Inc. (NASDAQ:ASTE) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.79%.

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Astec Industries, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 7.55% to $0.57 in the quarter versus EPS of $0.53 in the year-earlier quarter.

Revenue: Decreased 7.07% to $247.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Astec Industries, Inc. reported adjusted EPS income of $0.57 per share. By that measure, the company beat the mean analyst estimate of $0.54. It missed the average revenue estimate of $256.44 million.

Quoting Management: Dr. J. Don Brock, Chairman and Chief Executive Officer, stated, “Although our revenues and pre-tax earnings were relatively flat compared to the first quarter of 2012, we were able to improve our gross margin by 30 basis points over the first quarter of 2012 and 250 basis points from the fourth quarter of 2012. Since the federal research and development tax credit for 2012 was not approved by Congress until early 2013, our first quarter results also include a substantial reduction in our effective tax rate.”

Key Stats (on next page)…

Revenue increased 31.31% from $188.72 million in the previous quarter. EPS increased 147.83% from $0.23 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.55 to a profit $0.54. For the current year, the average estimate has moved down from a profit of $1.99 to a profit of $1.92 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)