NASDAQ$ASTE

Astec Industries Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Astec's Q4 2023 earnings decreased slightly in net sales but delivered growth in Infrastructure Solutions and significant gross margin expansion.

Astec Industries reported a slight decrease in net sales for Q4 2023, primarily due to declines in Materials Solutions and international markets, offset by growth in Infrastructure Solutions. Gross margin significantly improved, and the company saw a substantial increase in both diluted and adjusted EPS. The backlog continued to normalize, but implied orders showed positive momentum.

  • Net sales decreased by 3.6% to $337.2 million.
  • Gross margin increased by 610 basis points to 26.4%.
  • Diluted EPS was $0.65, compared to $(0.04) in the prior year.
  • Adjusted EPS was $0.90, compared to $0.34 in the prior year.

Headline financials

Total Revenue

$337M

Previous: $350M-3.6%
EPS (adj)

$0.90

Previous: $0.34+164.7%
Capital Expenditures

-$9.1M

Previous: $13.1M-169.5%
Free Cash Flow

$36.5M

Previous: -$30.2M+220.9%
Net Income

$14.9M

Previous: -$1M+1590.0%
Operating Income

$18.9M

Previous: $3.3M+472.7%
Gross Profit

$89.1M

Previous: $71M+25.5%
Stock-Based Comp

$600K

Previous: $1.4M-57.1%

Revenue & EPS history

Astec · Revenue · Quarterly

$337M

Q4 2023-3.6%vs Q4 2022
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 continued strong demand for asphalt road building and concrete production equipment as spending from the multi-year Federal Highway Bill begins to accelerate. The company continues to execute its Simplify, Focus and Grow strategy, with emphasis on top line growth through expansion of its aftermarket and exciting new products, continued margin improvements, and free cash flow generation through working capital improvements.

Tailwinds

  • Continued strong demand for asphalt road building equipment.
  • Continued strong demand for concrete production equipment.
  • Spending from the multi-year Federal Highway Bill begins to accelerate.
  • Emphasis on top line growth through expansion of the aftermarket.
  • Continued margin improvements.

Headwinds

  • Dynamic environment due to order patterns.
  • Dynamic environment due to interest rates.
  • Dynamic environment due to parts demand.
  • Transformation program initiatives to optimize our Company for long term value creation.
  • Multi-year phased ERP implementation

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 Q4 2023

Historical avgQ4 2023

-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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