Upcoming AWS Coverage on Astec Industries Post-Earnings Results
LONDON, UK / ACCESSWIRE / March 8, 2017 / Active Wall St. announces its post-earnings coverage on Terex Corp. (NYSE: TEX). The Company posted its financial results for the fourth quarter fiscal 2016 (Q4 FY16) and full year 2016 (FY16) on February 21, 2017. The Westport, Connecticut-based Company's quarterly net sales and adjusted EPS fell on a year-over-year basis; however, they beat market consensus estimates. Register with us now for your free membership at:
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One of Terex's competitors within the Farm & Construction Machinery space, Astec Industries, Inc. (NASDAQ: ASTE), reported on February 21, 2017, its results for Q4 and year ended December 31, 2016. AWS will be initiating a research report on Astec Industries in the coming days.
Today, AWS is promoting its earnings coverage on TEX; touching on ASTE. Get our free coverage by signing up to:
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Earnings Reviewed
In Q4 FY16, Terex's net sales fell to $974.7 million from $1.17 billion reported in Q4 FY15. However, net sales for the reported quarter outperformed market expectations of $919 million.
The machinery products Company reported loss from continuing operations of $313.9 million, or $2.96 loss per share per diluted share, in Q4 FY16 compared to income from continuing operations $23.8 million, or $0.22 per diluted share, in Q4 FY15. Excluding after-tax charges of $321.3 million, the Company's adjusted income from continuing operations for Q4 FY16 was $7.4 million, or $0.07 per diluted share, compared to $32.0 million, or $0.29 per diluted share, recorded in Q4 FY15. Meanwhile, Wall Street had expected the Company to report adjusted net loss of $0.05 per share.
For full year FY16, Terex's net sales were $4.44 billion compared to $5.02 billion reported in FY15. The Company reported loss from continuing operations of $193.0 million, or $1.79 loss per diluted share, in FY16 compared to income from continuing operations $128.4 million, or $1.17 per diluted share, in FY15. Additionally, the Company's adjusted income from continuing operations for FY16 stood at $95.3 million, or $0.88 per diluted share, compared to $154.6 million, or $1.41 per diluted share, recorded in FY15.
Operating Metrics
During Q4 FY16, Terex reported gross profit of $104.7 million compared to $215.3 million in Q4 FY15. The Company's Q4 FY16 loss from operations for the reported quarter stood at $272.1 million against income from operations of $57.2 million in Q4 FY15. Furthermore, interest expenses during the reported quarter totaled $26.4 million compared to $25.6 million in the prior year's same quarter.
Segment Performance
Terex's Arial Work Platforms (AWP) net sales fell to $379.0 million during Q4 FY16 from $459.3 million in the prior year's comparable quarter. The segment's income from operations also declined to $18.2 million, or 4.8% of segment net sales, in Q4 FY16 from $41.6 million, or 9.1% of segment net sales, in the year-ago corresponding quarter.
In the reported period, the Company's crane segment's net sales were $327.0 million, which came in below the $406.2 million reported in Q4 FY15. The segment reported losses from operations of $280.2 million in Q4 FY16, against income from operations of $20.5 million recorded in the year-ago same quarter.
During Q4 FY16, Materials Processing segment's net sales were marginally down to $236.3 million from $241.5 million in the last year's comparable quarter. However, the segment's Q4 FY16 income from operations increased to $22.4 million, or 9.5% of segment net sales, from $13.8 million, or 5.7% of segment net sales, in Q4 FY15.
Cash Flow & Balance Sheet
During the year ended on December 31, 2016, Terex's net cash provided by operating activities increased to $367.0 million from $212.9 million in in the year ago comparable period. The Company had cash and cash equivalents balance of $428.5 million as on December 31, 2016, compared to $371.2 million at the close of books on December 31, 2015. Furthermore, the Company had long-term debt amounting to $1.56 billion as on December 31, 2016, compared to $1.73 billion as on December 31, 2015.
Dividend and Share Repurchases
In a separate press release on February 21, 2017, Terex' Board of Directors announced a 14% hike in the quarterly dividend to $0.08 per share. The dividend will be paid on March 20, 2017, to shareholders of record as of March 10, 2017.
The Company also announced that its Board of Directors authorized a new share repurchase program of up to $350 million. The new share repurchase program will commence upon completion of the Company's current $200 million program, which has approximately $70 million remaining.
Outlook
In its guidance for full year FY17, Terex' management expects global Crane market to be challenging and anticipate a further decline. The Company forecasts a modest growth in its Materials Processing business. For FY17, the Company projects earnings, excluding restructuring cost and other unusual items, to be between $0.60 per share and $0.80 per share, on net sales of approximately $3.9 billion.
Stock Performance
On Tuesday, March 07, 2017, the stock closed the trading session at $31.80, sliding 1.24% from its previous closing price of $32.20. A total volume of 1.02 million shares have exchanged hands. Terex's stock price advanced 7.07% in the last three months, 30.82% in the past six months, and 47.14% in the previous twelve months. The stock currently has a market cap of $3.32 billion and has a dividend yield of 1.01%.
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