Terex Crushes Earnings Estimates

Seth Jayson, The Motley Fool
Updated

Terex (NYS: TEX) reported earnings on July 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Terex met expectations on revenue and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share improved.


Margins grew across the board.

Revenue details
Terex chalked up revenue of $2.01 billion. The 14 analysts polled by S&P Capital IQ predicted a top line of $2.02 billion on the same basis. GAAP reported sales were 35% higher than the prior-year quarter's $1.49 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.76. The 18 earnings estimates compiled by S&P Capital IQ averaged $0.50 per share. GAAP EPS of $0.77 for Q2 were much higher than the prior-year quarter's $0.00 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.)

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 21.3%, 610 basis points better than the prior-year quarter. Operating margin was 8.7%, 720 basis points better than the prior-year quarter. Net margin was 4.3%, 430 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.05 billion. On the bottom line, the average EPS estimate is $0.52.

Next year's average estimate for revenue is $7.94 billion. The average EPS estimate is $1.78.

Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Terex is outperform, with an average price target of $29.21.

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The article Terex Crushes Earnings Estimates originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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