NASDAQ$ASTE

Astec Industries Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Astec's first quarter results for 2024 were announced, revealing a decrease in net sales and earnings per share compared to the same quarter last year, but the company remains optimistic due to strong demand in the Infrastructure Solutions segment and strategic initiatives.

Astec Industries reported a decrease in net sales by 11.1% to $309.2 million and a decline in diluted EPS to $0.15 compared to $0.53 in the first quarter of the previous year. The company experienced challenges in the Materials Solutions segment due to finance capacity constraints and supply chain delays in the Infrastructure Solutions segment, but anticipates improvements throughout the year.

  • Net sales decreased by 11.1% to $309.2 million due to fewer conversions in Materials Solutions and supply chain delays in Infrastructure Solutions.
  • Diluted EPS decreased to $0.15, compared to $0.53 in the prior year, while adjusted EPS was $0.34 compared to $0.90.
  • Backlog was $559.8 million as of March 31, 2024.
  • Federal highway and pavement contract awards increased 11% year-over-year.

Headline financials

Total Revenue

$309M

Previous: $348M-11.1%
EPS

$0.15

Previous: $0.90-83.3%
EBITDA

$13.4M

No prior period
Adjusted EBITDA

$18.9M

Previous: $35.2M-46.3%
EBITDA Margin

4.3%

No prior period
Adjusted EBITDA Margin

6.1%

Previous: 10.1%-39.6%
Operating Margin

2.0%

No prior period
Adjusted Operating Margin

3.9%

No prior period
Effective Tax Rate

29.8%

No prior period
Capital Expenditures

-$5.8M

Previous: -$8M+27.5%
Free Cash Flow

-$2.4M

Previous: $4.1M-158.5%
Net Income

$3.4M

Previous: $12.1M-71.9%
Operating Income

$6.3M

Previous: $17.6M-64.2%
Gross Profit

$76.9M

Previous: $89.2M-13.8%
Cash & Equivalents

$58.1M

Previous: $42.5M+36.7%
Total Assets

$1.12B

Previous: $1.01B+11.4%
Stock-Based Comp

$1.2M

Previous: $800K+50.0%

Revenue & EPS history

Astec · Revenue · Quarterly

$309M

Q1 2024-11.1%vs Q1 2023
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

Astec · $191M total across 1 segment · Q3 2023

  • Infrastructure Solutions
    $191M-5.5%

Forward guidance

Astec anticipates Materials Solutions softness to be offset by a strong Infrastructure Solutions market. Declines during the first quarter in the Materials Solutions segment were primarily due to longer product conversion cycles from rental to buy and finance capacity constraints attributable to the challenging interest rate environment. Infrastructure Solutions sales were affected by supply chain delays from a specific supplier and are expected to ship during the second quarter.

Tailwinds

  • Strong demand for asphalt and concrete plants.
  • Project activity at the federal, state and local levels remains robust.
  • Expansion of collaboration with dealers to develop best-in-class aftermarket practices in both Infrastructure Solutions and Materials Solutions.
  • Rollout of new products in 2024.
  • Focus on driving margin enhancement and working capital improvements.

Headwinds

  • Challenging conditions in Materials Solutions segment in the first half of the year.
  • Longer product conversion cycles from rental to buy.
  • Finance capacity constraints attributable to the challenging interest rate environment.
  • Supply chain delays from a specific supplier affecting Infrastructure Solutions sales.
  • Manufacturing inefficiencies.

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 2024

Historical avgQ1 2024

-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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