Terex Shares Soared: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of heavy machinery maker Terex (NYS: TEX) are building solid gains today, up by 24%, after the company reported strong third quarter earnings.

So what: The consensus estimates of $1.6 billion in sales and $0.23 per share profit don't compare to the $1.8 billion in revenue and $0.30 per share profit that Terex constructed for the quarter. The strength was a follow up to rival Caterpillar (NYS: CAT) , who also recently put up healthy numbers.

Now what: Terex also significantly cranked up its full-year revenue forecast, which it expects to fall in the range of $6.3 billion-$6.5 billion. The guidance is far higher than the previous range of $5.4 billion-$5.6 billion and the $6 billion that analysts expected. With the GDP figures released this morning showing growth starting to pick back up, construction spending should follow in suit.

Interested in more info on Terex? Add it to your watchlist byclicking here.

At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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