Terex Shares Soared: What You Need to Know
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.
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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.