Terex Earnings: Here’s Why the Stock is Falling Now

Terex Corp. (NYSE:TEX) 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 down 1.89%.

Terex Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 13.33% to $0.65 in the quarter versus EPS of $0.75 in the year-earlier quarter.

Revenue: Decreased 5.14% to $1.91 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Terex Corp. reported adjusted EPS income of $0.65 per share. By that measure, the company beat the mean analyst estimate of $0.55. It missed the average revenue estimate of $1.98 billion.

Quoting Management: financial performance is contained in the presentation that will accompany the Company’s earnings conference call.
“As we communicated in mid-June, the marketplace overall has softened compared to what we originally anticipated for 2013,” commented Ron DeFeo, Terex Chairman and Chief Executive Officer. “The second quarter results reflect this lighter order environment overall, as our Cranes, Construction and Material Handling & Port Solutions (MHPS) segments all experienced lower revenues than originally expected. However, we do continue to see strong performance from our Aerial Work Platforms (NYSE:AWP) business, and good operational execution by our Materials Processing business in a challenging environment. Overall by geography, North America continues to improve, but now at a slower pace. Europe remains challenging, particularly for our Cranes, Construction and MHPS segments, and the markets in the rest of the world remain mixed.”

Key Stats (on next page)…

Revenue increased 10.74% from $1.72 billion in the previous quarter. EPS increased 182.61% 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 $0.78 to a profit $0.66. For the current year, the average estimate has moved down from a profit of $2.61 to a profit of $1.99 over the last ninety days.

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