NASDAQ$ASTE

Astec Industries Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Astec reported results with adjusted EPS increasing and closure of Wisconsin facility announced.

Astec Industries reported a decrease in net sales by 13.0% to $265.3 million, but adjusted net sales decreased by only 6.8%. EPS was $0.41, while adjusted EPS increased by 81.1% to $0.67. The company announced the closure of its Mequon, Wisconsin facility as part of its global footprint consolidation strategy.

  • Net sales decreased 13.0% to $265.3M; adjusted net sales decreased just 6.8% due to $20.0M included in 2019 sale of a wood pellet plant
  • Gross margin of 22.5% decreased 480 bps; adjusted Gross margin increased 100 bps
  • EPS of $0.41 compared to $1.03 a year ago; adjusted EPS of $0.67 increased 81.1%
  • EBITDA decreased 53.2% to $17.4M; adjusted EBITDA of $25.3M increased 46.9% from $17.2M a year ago; adjusted EBITDA margin of 9.5% increased 350 bps

Headline financials

Total Revenue

$265M

Previous: $305M-13.0%
EPS (adj)

$0.67

Previous: $0.36+86.1%
Adjusted EBITDA

$25.3M

Previous: $17.2M+47.1%
Adjusted EBITDA Margin

9.5%

Previous: 6.0%+58.3%
Capital Expenditures

-$7.41M

Previous: -$8.66M+14.4%
Free Cash Flow

$1.85M

Previous: $14.7M-87.4%
Net Income

$9.26M

Previous: $23.4M-60.4%
Operating Income

$10.9M

Previous: $30.5M-64.4%
Gross Profit

$59.6M

Previous: $83.5M-28.6%
Cash & Equivalents

$120M

Previous: $24.9M+381.0%
Total Assets

$794M

Previous: $849M-6.4%
Stock-Based Comp

$1.89M

Previous: $701K+169.2%

Revenue & EPS history

Astec · Revenue · Quarterly

$265M

Q2 2020-13%vs Q2 2019
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Revenue by segment

Astec · $265M total across 2 segments · Q2 2020

  • Infrastructure Solutions
    $182M
  • Material Solutions
    $83.4M

Forward guidance

Astec remains cautious given the global pandemic but is well positioned to navigate the economic challenges ahead with a more efficient and streamlined organizational structure, a strong balance sheet and ample liquidity.

Tailwinds

  • More efficient and streamlined organizational structure
  • Strong balance sheet
  • Ample liquidity
  • Strategic transformation with Adjusted EBITDA and 350 bps expansion in Adjusted EBITDA margin
  • Acquisition of two premier full-line concrete batch plant manufacturers, CON-E-CO and BMH

Headwinds

  • Global pandemic
  • Economic challenges
  • Net Sales decreased 13.0%
  • Gross margin decreased 480 bps
  • COVID-19 uncertainties

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 Q2 2020

Historical avgQ2 2020

-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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