NASDAQ$ASTE

Astec Industries Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported an increase in net sales and backlog, but a decrease in gross profit margin and operating margin.

Astec Industries reported an 18.1% increase in net sales to $315.2 million, driven by volume, price realization, and mix in both Infrastructure Solutions and Materials Solutions groups. Backlog increased 56.2% to $969.0 million. However, gross profit margin decreased by 250 bps to 20.7% due to manufacturing inefficiencies from supply chain disruptions, and operating margin also declined.

  • Net sales increased 18.1% to $315.2 million.
  • Gross Profit Margin decreased 250 bps to 20.7%.
  • Backlog increased 56.2% to $969.0 million.
  • Repurchased $6.1 million of shares.

Headline financials

Total Revenue

$315M

Previous: $267M+18.1%
EPS (adj)

$0.28

Previous: $0.50-44.0%
Adjusted EBITDA

$16.6M

Previous: $16.8M-1.2%
Adjusted EBITDA Margin

5.3%

Previous: 6.3%-15.9%
Operating Margin

0.6%

No prior period
Effective Tax Rate

58.3%

No prior period
Capital Expenditures

-$27.6M

Previous: -$10.9M-153.2%
Free Cash Flow

-$26.9M

Previous: -$1.6M-1581.3%
Net Income

$700K

Previous: $9.3M-92.5%
Operating Income

$1.8M

Previous: $6.7M-73.1%
Gross Profit

$65.4M

Previous: $62.3M+5.0%
Cash & Equivalents

$20.8M

Previous: $165M-87.4%
Total Assets

$945M

Previous: $911M+3.7%
Stock-Based Comp

$2M

Previous: $1.7M+17.6%

Revenue & EPS history

Astec · Revenue · Quarterly

$315M

Q3 2022+18.1%vs Q3 2021
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

Astec · $202M total across 1 segment · Q3 2022

  • Infrastructure Solutions
    $202M+14.5%

Forward guidance

Astec is confident in the long-term value our Simplify, Focus and Grow strategy will create for Astec stakeholders.

Tailwinds

  • Customer demand for Astec products continues to drive increased backlog, which grew year-over-year and sequentially.
  • Net sales were driven by net volume, pricing and mix that generated increases primarily in domestic equipment and parts sales.
  • Resilience of our customers and employees.
  • Strong balance sheet.
  • Multi-year tailwind provided by the long-term federal highway bill.

Headwinds

  • Inconsistent vendor deliveries negatively affected manufacturing efficiencies.
  • Operating margin decreased due to lower gross profit margin (manufacturing inefficiencies due to supply chain disruptions).
  • Operating margin decreased due to higher selling, general and administrative expenses.
  • The effective tax rate for the quarter was higher compared to the same quarter in 2021 primarily due to net discrete tax benefits in the prior year that did not reoccur partially offset by the tax effect of lower pre-tax earnings.
  • Net cash used in operating activities for the nine months ended September 30, 2022 was $56.8 million as we carried additional working capital to satisfy growth in customer demand for our products.

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 2022

Historical avgQ3 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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