NASDAQ$ASTE

Astec Industries Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Astec's financial performance decreased in Q3 2020, with net sales and net income declining, but adjusted gross and EBITDA margins expanded due to strategic transformation and operational excellence initiatives.

Astec Industries reported a decrease in net sales by 9.5% to $231.4 million and a decrease in net income by 45.2% to $1.6 million for Q3 2020. Despite the decline in sales, the company achieved adjusted gross and EBITDA margin expansion due to strategic initiatives and operational excellence. Adjusted EPS increased to $0.20 from $0.17.

  • Net sales decreased by 9.5% to $231.4 million compared to the prior year third quarter.
  • Gross profit margin increased by 150 bps to 21.8%, and adjusted gross profit margin increased by 260 bps.
  • Net income decreased by 45.2% to $1.6 million, while adjusted net income increased by 21.7% to $4.6 million.
  • Adjusted EPS increased to $0.20 from $0.17 in the third quarter of the previous year.

Headline financials

Total Revenue

$231M

Previous: $256M-9.5%
EPS (adj)

$0.20

Previous: $0.17+17.6%
Adjusted EBITDA

$11M

No prior period
Adjusted EBITDA Margin

4.8%

No prior period
Capital Expenditures

-$10.9M

Previous: -$17.9M+39.0%
Free Cash Flow

-$9.29M

Previous: -$14.9M+37.7%
Net Income

$1.65M

Previous: $3.01M-45.2%
Operating Income

-$808K

Previous: $3.34M-124.2%
Gross Profit

$50.4M

Previous: $51.9M-2.7%
Cash & Equivalents

$109M

Previous: $26.3M+312.8%
Total Assets

$820M

Previous: $816M+0.5%
Stock-Based Comp

$1.83M

Previous: $379K+382.1%

Revenue & EPS history

Astec · Revenue · Quarterly

$231M

Q3 2020-9.5%vs Q3 2019
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

Astec · $231M total across 2 segments · Q3 2020

  • Infrastructure Solutions
    $151M
  • Material Solutions
    $80.3M

Forward guidance

Astec remains cautiously optimistic, citing a streamlined organizational structure, strong balance sheet, and ample liquidity as factors that position them well to navigate economic challenges related to the global pandemic.

Tailwinds

  • Streamlined organizational structure
  • Strong balance sheet
  • Ample liquidity
  • Well-positioned to navigate economic challenges
  • Continued focus on operational excellence

Headwinds

  • Economic challenges related to the global pandemic
  • Uncertainties related to COVID-19
  • Potential disruptions in the supply chain
  • Decreased funding for highway projects
  • General uncertainty in the economy

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 Q3 2020

Historical avgQ3 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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