As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the construction machinery industry, including Astec (NASDAQ:ASTE) and its peers.
Automation that increases efficiencies and connected equipment that collects analyzable data have been trending, creating new sales opportunities for construction machinery companies. On the other hand, construction machinery companies are at the whim of economic cycles. Interest rates, for example, can greatly impact the commercial and residential construction that drives demand for these companies’ offerings.
The 4 construction machinery stocks we track reported a weaker Q2. As a group, revenues missed analysts’ consensus estimates by 1.3%.
Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation. However, construction machinery stocks have held steady amidst all this with average share prices relatively unchanged since the latest earnings results.
Astec (NASDAQ:ASTE)
Inventing the first ever double-barrel hot-mix asphalt plant, Astec (NASDAQ:ASTE) provides machines and equipment for building roads, processing raw materials, and producing concrete.
Astec reported revenues of $345.5 million, down 1.3% year on year. This print exceeded analysts’ expectations by 4%. Despite the top-line beat, it was still a mixed quarter for the company.
"We are pleased with the trajectory of our second quarter performance, specifically, the overall 5.9% increase in implied orders in spite of difficult market conditions for our Materials Solutions segment." said Jaco van der Merwe, Chief Executive Officer.
Astec pulled off the biggest analyst estimates beat and fastest revenue growth of the whole group. Unsurprisingly, the stock is up 8% since reporting and currently trades at $33.83.
Is now the time to buy Astec? Access our full analysis of the earnings results here, it’s free.
Best Q2: Caterpillar (NYSE:CAT)
With its iconic yellow machinery working on construction sites, Caterpillar (NYSE:CAT) manufactures construction equipment like bulldozers, excavators, and parts and maintenance services.
Caterpillar reported revenues of $16.69 billion, down 3.6% year on year, in line with analysts’ expectations. It performed better than its peers, but it was unfortunately a mixed quarter for the company with an impressive beat of analysts’ operating margin estimates but a miss of analysts’ organic revenue estimates.
The market seems happy with the results as the stock is up 12.6% since reporting. It currently trades at $356.50.
Is now the time to buy Caterpillar? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Manitowoc (NYSE:MTW)
Contracted by the United States Navy during WWII, Manitowoc (NYSE:MTW) provides cranes and lifting equipment.
Manitowoc reported revenues of $562.1 million, down 6.8% year on year, falling short of analysts’ expectations by 6%. It was a weak quarter for the company with full-year revenue guidance missing analysts’ expectations and underwhelming EBITDA guidance for the full year.
Manitowoc had the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update in the group. As expected, the stock is down 6.3% since the results and currently trades at $10.09.
Read our full analysis of Manitowoc’s results here.
Terex (NYSE:TEX)
With humble beginnings as a dump truck company, Terex (NYSE:TEX) today manufactures lifting and material handling equipment designed to move and hoist heavy goods and materials.
Terex reported revenues of $1.38 billion, down 1.5% year on year, falling short of analysts’ expectations by 3.2%. Overall, it was a slower quarter for the company with full-year revenue guidance missing analysts’ expectations.
Terex achieved the highest full-year guidance raise among its peers. The stock is down 13.6% since reporting and currently trades at $56.77.
Read our full, actionable report on Terex here, it’s free.
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