Terex Earnings Preview

Motley Fool Staff
Updated

Terex (NYS: TEX) didn't hit the Street's expectations last quarter, but investors hope that it will rebound this quarter. The company will unveil its latest earnings on Wednesday. Terex is a global manufacturer of capital equipment focused on delivering reliable, customer relevant solutions for the construction, infrastructure, quarrying, surface mining, shipping, transportation, power, and energy industries.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on Terex with 12 of 17 analysts rating it hold. Analysts don't like Terex as much as competitor Manitowoc overall. Six out of 13 analysts rate Manitowoc a buy compared to five of 17 for Terex. While analysts still rate the stock a hold, they are a little more optimistic about it compared to three months ago.

  • Revenue forecasts: On average, analysts predict $1.59 billion in revenue this quarter. That would represent a rise of 47.2% from the year-ago quarter.

  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.23 per share. Estimates range from $0.15 to $0.34.

What our community says:
CAPS All-Stars are solidly behind the stock with 98.7% awarding it an outperform rating. The community at large agrees with the All-Stars with 96.9% granting it a rating of outperform. Fools are keen on Terex and haven't been shy with their opinions lately, logging 386 posts in the past 30 days. Even with a robust four out of five stars, Terex's CAPS rating falls a little short of the community's upbeat outlook.

Management:
Revenue has now gone up for three straight quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q2

Q1

Q4

Q3

Gross Margin

14.4%

13.3%

14%

15.2%

Operating Margin

0.5%

(0.7%)

0%

0.3%

Net Margin

0%

0.9%

(3.4%)

(8.9%)

One final thing: If you want to keep tabs on Terex movements, and for more analysis on the company, make sure you add it to your watchlist.

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At the time thisarticle was published

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