Home Tangible Assets Spotting Winners: Astec (NASDAQ:ASTE) And Heavy Machinery Stocks In Q1
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Spotting Winners: Astec (NASDAQ:ASTE) And Heavy Machinery Stocks In Q1

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Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Astec (NASDAQ:ASTE) and the best and worst performers in the heavy machinery industry.

Automation that increases efficiencies and connected equipment that collects analyzable data have been trending, creating new demand for heavy machinery and equipment companies. The gradual transition to clean energy also allows companies to innovate around emissions, potentially spurring replacement cycles that can accelerate revenue growth. On the other hand, heavy machinery companies are at the whim of economic cycles. Interest rates, for example, can greatly impact the commercial and residential construction that drives demand for these companies’ offerings.

The 21 heavy machinery stocks we track reported a satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 1.2% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Astec (NASDAQ:ASTE)

Inventing the first ever double-barrel hot-mix asphalt plant, Astec (NASDAQ:ASTE) provides machines and equipment for building roads, processing raw materials, and producing concrete.

Astec reported revenues of $396.3 million, up 20.3% year on year. This print exceeded analysts’ expectations by 0.8%. Despite the top-line beat, it was still a softer quarter for the company with a significant miss of analysts’ adjusted operating income estimates.

“A 70.6% increase in Materials Solutions net sales was primarily driven by organic and inorganic contributions. Infrastructure Solutions net sales were relatively flat after the inclusion of inorganic sales which offset timing and mix-related shortfalls in our legacy business.” said Jaco van der Merwe, Chief Executive Officer.

Astec Total Revenue
Astec Total Revenue

The market seems disappointed with the results as the stock is down 17.5% since reporting and currently trades at $51.71.

Is now the time to buy Astec? Access our full analysis of the earnings results here, it’s free.

Best Q1: Douglas Dynamics (NYSE:PLOW)

Once manufacturing snowplows designed for the iconic jeep vehicle precursor, Douglas Dynamics (NYSE:PLOW) offers snow and ice equipment for the roads and sidewalks.

Douglas Dynamics reported revenues of $137.8 million, up 19.8% year on year, outperforming analysts’ expectations by 3.4%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates.



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