Astec Industries Earnings: Here’s Why the Stock is Down Now

Astec Industries, Inc. (NASDAQ:ASTE) delivered a profit and missed Wall Street’s expectations, AND 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 down 1.82%.

Astec Industries, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 6.67% to $0.48 in the quarter versus EPS of $0.45 in the year-earlier quarter.

Revenue: Decreased 2.28% to $248.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Astec Industries, Inc. reported adjusted EPS income of $0.48 per share. By that measure, the company missed the mean analyst estimate of $0.55. It missed the average revenue estimate of $253.01 million.

Quoting Management: Commenting on the announcement, Dr. J. Don Brock, Chairman and Chief Executive Officer, stated, “As we discussed in our first quarter conference call, our second quarter performance was very similar to our first quarter. We were able to reduce our S,G,A and E expenses compared to the first quarter of 2013 but our gross margin came in below our expectations in the Asphalt Group due to product mix and decreased overhead absorption.”

Key Stats (on next page)…

Revenue increased 0.11% from $247.83 million in the previous quarter. EPS decreased 15.79% from $0.57 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.38 and has not changed. For the current year, the average estimate has moved down from a profit of $1.96 to a profit of $1.95 over the last ninety days.

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