The Gory Details on Terex's Double Miss

Seth Jayson, The Motley Fool
Updated

Terex (NYS: TEX) reported earnings on Feb. 19. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Dec. 31 (Q4), Terex missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share shrank significantly. GAAP loss per share increased.


Gross margins increased, operating margins contracted, net margins contracted.

Revenue details
 Terex notched revenue of $1.70 billion. The 15 analysts polled by S&P Capital IQ expected net sales of $1.83 billion on the same basis. GAAP reported sales were 13% lower than the prior-year quarter's $1.96 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 $0.19. The 17 earnings estimates compiled by S&P Capital IQ averaged $0.40 per share. Non-GAAP EPS of $0.19 for Q4 were 30% lower than the prior-year quarter's $0.27 per share. (The prior-year quarter included $0.01 per share in earnings from discontinued operations.) GAAP EPS were -$0.30 for Q4 versus -$0.03 per share for the prior-year quarter.

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 18.1%, 130 basis points better than the prior-year quarter. Operating margin was 1.6%, 140 basis points worse than the prior-year quarter. Net margin was -2.0%, 190 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $1.80 billion. On the bottom line, the average EPS estimate is $0.38.

Next year's average estimate for revenue is $7.83 billion. The average EPS estimate is $2.66.

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 $26.53.

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The article The Gory Details on Terex's Double Miss 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. The Motley Fool has no position in any of the stocks mentioned. 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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