NASDAQ$ASTE

Astec Industries Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Astec's financial performance decreased in Q1 2022, with net sales increasing slightly but net income and EPS declining significantly due to inflation and supply chain challenges.

Astec Industries reported a slight increase in net sales for Q1 2022, but experienced a significant decrease in net income and earnings per share. The company faced challenges including inflation outpacing sales volume, supply chain disruptions, and COVID-19 impacts on the workforce. Despite these challenges, backlog reached a record level, and customer sentiment remains positive.

  • Net sales increased by 2.4% to $291.2 million compared to the prior year first quarter.
  • Net income decreased by 51.8% to $4.1 million, with diluted EPS at $0.18 compared to $0.37.
  • Operating income decreased by 43.2% to $5.4 million, with operating margin decreasing by 140 basis points to 1.9%.
  • Backlog reached a record $834.7 million, an increase of 98.4% compared to the previous year.

Headline financials

Total Revenue

$291M

Previous: $284M+2.4%
EPS (adj)

$0.41

Previous: $0.41+0.0%
Capital Expenditures

-$11.6M

Previous: -$3.3M-251.5%
Free Cash Flow

-$7.5M

Previous: $5.4M-238.9%
Net Income

$4.1M

Previous: $8.7M-52.9%
Operating Income

$5.4M

Previous: $9.8M-44.9%
Gross Profit

$66.1M

Previous: $68.5M-3.5%
Cash & Equivalents

$112M

Previous: $165M-32.1%
Total Assets

$943M

Previous: $868M+8.6%
Stock-Based Comp

$1.8M

Previous: $1.4M+28.6%

Revenue & EPS history

Astec · Revenue · Quarterly

$291M

Q1 2022+2.4%vs Q1 2021
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Astec · $198M total across 1 segment · Q1 2022

  • Infrastructure Solutions
    $198M-2.0%

Forward guidance

Astec anticipates continued supply chain disruptions and manages them actively. They also anticipate that the Infrastructure Investment and Jobs Act will positively impact the road construction industry, allowing customers to plan longer-term projects.

Tailwinds

  • Customer sentiment remains positive for 2022.
  • Multi-year federal Infrastructure Investment and Jobs Act is a long-term tailwind.
  • Actively managing global supply chain for constraints and volatility.
  • Increased frequency of communications with suppliers and customers to ensure business continuity.
  • Implementing efficiency improvements and actively modifying recruitment process to retain personnel.

Headwinds

  • Continued supply chain disruptions are expected.
  • Fluctuations in demand for products due to the pandemic.
  • Material price increases and increased shipping costs.
  • Labor shortages and increased labor costs.
  • Business operations were not at optimal manufacturing efficiency due to a spike in the COVID-19 omicron variant.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-1.3%

Avg return

Earnings day

-0.8%

Avg return

5 days after

-0.7%

Avg return

30 days after

46%

31 / 68 earnings

Positive

+18.2%

Q2 2016

Best reaction

-30.6%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-14.5%-15.9%-19.9%
Q4 2025+4.8%+9.3%-10.9%
Q3 2025-2.2%-0.9%-2.6%
Q1 2025+6.7%+8.1%+12.2%
Q4 2024+13.9%+11.4%+12.4%
Q3 2024+11.6%+16.9%+13.2%
Q2 2024+1.3%+0.7%-3.0%
Q1 2024-20.7%-21.9%-22.3%
Q4 2023+11.8%+11.9%+20.3%
Q3 2023-25.5%-21.3%-19.7%
Q2 2023+2.5%+4.5%+6.6%
Q1 2023-2.8%-0.4%+0.5%
Q4 2022+8.5%+4.0%-8.4%
Q3 2022-2.3%+0.9%+0.6%
Q2 2022-15.2%-13.6%-22.2%
Q1 2022+3.2%+2.8%+16.6%
Q4 2021-6.3%-6.9%-15.9%
Q3 2021+11.8%+35.4%+16.3%
Q2 2021-1.9%-2.7%-2.2%
Q1 2021-12.2%-11.8%-10.0%
Q4 2020+4.5%+5.2%+11.0%
Q3 2020-9.0%-0.7%+13.9%
Q2 2020+11.3%+15.5%+16.9%
Q1 2020+5.1%+6.0%+28.5%
Q4 2019+2.0%+3.8%+32.2%
Q3 2019+5.4%+8.3%+15.0%
Q2 2019+6.5%+6.2%-10.3%
Q1 2019-23.2%-22.1%-30.4%
Q4 2018+3.3%+2.6%-1.0%
Q3 2018-30.6%-28.3%-26.9%
Q2 2018-16.8%-20.6%-21.3%
Q1 2018-2.1%-2.8%+2.2%
Q4 2017+1.2%+1.3%-8.7%
Q3 2017-2.2%-0.2%+5.7%
Q2 2017-10.4%-9.4%-15.8%
Q1 2017+0.1%+0.0%-11.8%
Q4 2016-7.0%-9.5%-13.4%
Q3 2016-11.2%-9.9%+9.3%
Q2 2016+18.2%+14.8%+14.3%
Q1 2016+6.0%
Q4 2015+4.7%
Q3 2015-8.4%
Q2 2015-7.1%
Q1 2015+3.2%
Q4 2014+8.6%
Q3 2014-5.5%
Q2 2014+2.7%
Q1 2014-4.4%
Q4 2013+10.7%
Q3 2013-2.3%
Q2 2013-2.0%
Q1 2013+3.0%
Q4 2012+0.9%
Q3 2012-2.1%
Q2 2012+2.9%
Q1 2012-5.8%
Q4 2011-2.6%
Q3 2011-4.4%
Q2 2011+1.4%
Q1 2010-0.7%
Q1 2011+3.5%
Q4 2008-1.3%
Q4 2010-1.3%
Q3 2010-1.4%
Q3 2009-1.4%
Q2 2010-1.5%
Q4 2009-1.5%
Q2 2009-1.5%

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