NASDAQ$ASTE

Astec Industries Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Astec reported a decrease in net sales but an increase in implied orders. Diluted EPS was negatively impacted by a goodwill impairment charge, while adjusted EPS saw a decline. The company is focusing on cost efficiencies and margin improvement.

Astec Industries reported a slight decrease in net sales, driven by softness in the Materials Solutions segment, but experienced an increase in implied orders. The company reported a loss per share due to a significant goodwill impairment charge, though adjusted EPS remained positive. They are focused on improving market dynamics and implementing cost efficiencies.

  • Net sales decreased by 1.3% compared to the prior year, primarily due to softness in the Materials Solutions segment.
  • Implied orders increased by 5.9% sequentially from the first quarter.
  • International sales increased by 15.4% year-over-year, driven by heightened activity in Canada, Mexico, Africa, and Europe.
  • A goodwill impairment charge of $20.2 million significantly impacted the operating loss.

Headline financials

Total Revenue

$346M

Previous: $350M-1.3%
EPS

-$0.61

Previous: $0.87-170.1%
EBITDA

-$4.4M

No prior period
Adjusted EBITDA

$27.6M

No prior period
EBITDA Margin

-1.3%

No prior period
Adjusted EBITDA Margin

8.0%

Previous: 9.2%-13.0%
Operating Margin

-3.1%

Previous: 4.9%-163.3%
Adjusted Operating Margin

6.2%

No prior period
Effective Tax Rate

-2.2%

Previous: 17.0%-112.9%
Segment Operating Adjusted EBITDA - Infrastructure Solutions

$27.2M

No prior period
Segment Operating Adjusted EBITDA - Materials Solutions

$10.2M

No prior period
Segment Operating Adjusted EBITDA Margin - Infrastructure Solutions

12.3%

No prior period
Segment Operating Adjusted EBITDA Margin - Materials Solutions

8.2%

No prior period
Capital Expenditures

-$13.4M

Previous: -$17.1M+21.6%
Free Cash Flow

-$27.4M

Previous: -$4M-585.0%
Net Income

-$14M

Previous: $13.1M-206.9%
Operating Income

-$10.7M

Previous: $17.3M-161.8%
Gross Profit

$81.3M

Previous: $82.9M-1.9%
Cash & Equivalents

$63.2M

Previous: $44.5M+42.0%
Total Assets

$1.11B

Previous: $1.01B+9.6%
Stock-Based Comp

$1.1M

Previous: $1.4M-21.4%

Revenue & EPS history

Astec · Revenue · Quarterly

$346M

Q2 2024-1.3%vs Q2 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 market dynamics to improve across both segments in the latter half of the year and expects to benefit from transformation programs in future operating results. The company is encouraged by the outlook for interest rates and the domestic road building market. They are proactively driving cost efficiencies, which, along with pricing and operational enhancements, will support continued margin improvement.

Tailwinds

  • Market dynamics are anticipated to improve across both groups in the latter half of the year.
  • Benefits from transformation programs are expected in future operating results.
  • The outlook for interest rates is encouraging.
  • The domestic road building market shows promise.
  • Proactive steps are being taken to drive further cost efficiencies.

Headwinds

  • The Materials Solutions segment experienced a decline in sales due to finance capacity constraints.
  • Longer product conversions impacted sales in the Materials Solutions segment.
  • Operating margin decreased due to the pre-tax non-cash goodwill impairment charge.
  • Increased selling, general, and administrative expenses affected profitability.
  • Manufacturing inefficiencies at select sites impacted Segment Operating Adjusted EBITDA margin for Infrastructure Solutions.

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 2024

Historical avgQ2 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro