Terex Earnings Preview: What to Expect on October 30th
Get ready for the upcoming earnings release from Terex, a major player in the construction equipment market. The company is scheduled to report its latest quarterly financial results on Wednesday, October 30th, 2024. Investors will be closely watching for signs of continued growth and future guidance.
Analysts’ Expectations:
Analysts are expecting Terex to report earnings per share (EPS) of $1.31 for the quarter. This prediction is based on recent company performance and industry trends. While hitting or exceeding estimates is important, investor focus will likely be on the company’s guidance for the next quarter. This guidance can provide valuable insights into Terex’s future prospects and often influences stock price movements.
Looking Back at Recent Performance:
In the previous quarter (Q2 2024), Terex beat EPS estimates, exceeding expectations by $0.10. However, this positive result was followed by a 3.71% drop in the company’s share price the following trading session. This highlights the importance of not only meeting earnings expectations but also providing encouraging guidance to maintain investor confidence.
Past Earnings Trends:
Here’s a closer look at Terex’s earnings performance over the last four quarters:
| Quarter | EPS Estimate | EPS Actual | Price Change (%) |
|—|—|—|—|
| Q2 2024 | $2.06 | $2.16 | -4.0% |
| Q1 2024 | $1.37 | $1.60 | -1.0% |
| Q4 2023 | $1.39 | $1.41 | -9.0% |
| Q3 2023 | $1.72 | $1.75 | -7.0% |
Stock Performance and Investor Sentiment:
As of October 28th, shares of Terex were trading at $55.46. Over the past 52 weeks, the stock has shown positive returns, rising 17.58%. These strong returns suggest that long-term shareholders are optimistic about the company’s future. The upcoming earnings release will provide an opportunity for Terex to reinforce this positive sentiment.
Analyst Views and Peer Comparisons:
Understanding industry expectations is crucial for investors. A review of analyst ratings and price targets offers valuable insight into the market’s overall sentiment toward Terex.
Analyst Ratings:
Based on 9 analyst ratings, Terex currently has a consensus rating of Neutral. The average one-year price target is $64.0, suggesting a potential 15.4% upside from current levels.Peer Comparisons:
To gain further perspective, let’s compare Terex to three other prominent companies in the industry: Atmus Filtration Techs, Trinity Industries, and Greenbrier Companies.| Company | Consensus Rating | Average 1-Year Price Target | Potential Upside/Downside (%) |
|—|—|—|—|
| Atmus Filtration Techs | Outperform | $43.4 | -21.75% |
| Trinity Industries | Neutral | $35.0 | -36.89% |
| Greenbrier Companies | Outperform | $57.5 | 3.68% |
Key Findings from Peer Analysis:
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Revenue Growth:
Terex lags behind its peers in revenue growth, with a decline of -1.53% over the past 3 months. This is a concern for investors as it indicates slower top-line earnings compared to competitors.*
Gross Profit:
Terex’s gross profit is in the middle range compared to its peers. This metric represents the profitability of the company’s core operations.*
Return on Equity (ROE):
Terex has the lowest ROE among its peers, indicating less efficient use of equity capital to generate profits.About Terex:
Founded in 1921, Terex Corporation is a global manufacturer of construction equipment. The company’s diverse product portfolio includes aerial work platforms, cranes, material handlers, and other specialized equipment. Terex’s core markets include nonresidential construction, maintenance, manufacturing, energy, and materials management.
Terex’s Financial Performance:
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Market Capitalization:
Terex’s market capitalization, which represents the total value of its outstanding shares, is relatively small compared to industry averages. This could pose challenges for growth and expansion.*
Revenue Trend:
The company has experienced a negative revenue trend in recent months, indicating a potential slowdown in business activity. This could be a factor impacting investor sentiment.*
Net Margin:
Terex boasts a strong net margin, exceeding industry averages. This demonstrates the company’s ability to control costs and generate profits.*
Return on Equity (ROE):
The company’s ROE is above industry average, suggesting efficient use of shareholder capital. This is a positive sign for investors.*
Return on Assets (ROA):
Terex exhibits a high ROA, indicating efficient use of assets to generate profits. This metric highlights the company’s strong financial health.*
Debt Management:
Terex maintains a conservative debt-to-equity ratio, below industry norms. This signifies a balanced approach to financing its operations.Key Takeaway:
While Terex’s recent financial performance shows some strengths, such as a strong net margin and a balanced debt approach, its lower revenue growth and lagging ROE compared to peers raise concerns. The upcoming earnings release will provide valuable insight into the company’s strategies for addressing these challenges and driving future growth. Investors should pay close attention to the company’s guidance for the next quarter to gauge its outlook for the remainder of the year.
