NYSE$TEX

Terex Corporation · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Terex faced market and operational headwinds, particularly in the AWP segment, but remained focused on disciplined capital allocation and generated positive free cash flow.

Terex reported Q4 results reflecting challenging global industrial equipment markets, with AWP revenue down 21%. MP maintained 12% operating margins despite a 10% revenue decrease. The company generated positive free cash flow and ended the year with a strong balance sheet.

  • Terex's Q4 results reflected challenging global industrial equipment markets.
  • AWP's fourth quarter revenue was down 21% due to cautious customer sentiment.
  • MP maintained 12% operating margins despite Q4 revenues being down 10%.
  • Terex generated positive free cash flow in the fourth quarter and ended 2019 with a strong balance sheet.

Headline financials

Total Revenue

$885M

Previous: $1.23B-28.2%
EPS (adj)

$0.36

Previous: $0.51-29.4%
Net Income

$24.5M

Previous: -$33M+174.2%
Operating Income

$22.9M

Previous: $46.7M-51.0%
Gross Profit

$169M

Previous: $224M-24.7%
Cash & Equivalents

$535M

Previous: $340M+57.6%
Total Assets

$3.2B

Previous: $3.49B-8.3%
Stock-Based Comp

$11.6M

Previous: $8.6M+34.9%

Revenue & EPS history

Terex · Revenue · Quarterly

$885M

Q4 2019-28.2%vs Q4 2018
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Terex · $321M total across 1 segment · Q4 2019

  • Materials Processing
    $321M-10.1%

Forward guidance

Terex anticipates global industrial markets to remain challenging in 2020, with sales expected to be down 8% to 11% from 2019. Full year earnings are projected to be $1.85 to $2.35 per share.

Tailwinds

  • Extension of existing 301 tariff exclusions for machines and components imported into the US from China is assumed.
  • Normal historical sales pattern is expected from a quarterly perspective.
  • Strong year of positive cash generation is expected, with free cash flow estimated at approximately $140 million.
  • Continued investment in initiatives designed to drive long-term earnings growth and shareholder returns.
  • No material impact to Terex in 2020 associated with the Brexit process is anticipated.

Headwinds

  • Global industrial markets are expected to remain challenging in 2020.
  • Sales are expected to be down 8% to 11% from 2019.
  • Lower anticipated sales will result in lower production levels, which will have an adverse effect on operating margins.
  • Lower sales and earnings are expected from the AWP China facility in the first half of the year due to the coronavirus.
  • Revenue in the first half of the year will be down approximately 15% year-over-year.

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 2019

Historical avgQ4 2019

-0.3%

Avg return

Earnings day

-0.8%

Avg return

5 days after

-0.4%

Avg return

30 days after

40%

29 / 72 earnings

Positive

+26.7%

Q2 2012

Best reaction

-10.6%

Q2 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.4%+3.3%-6.5%
Q4 2025+16.6%+16.8%+0.3%
Q3 2025-2.3%-19.3%-19.0%
Q1 2025+9.0%+7.0%+23.7%
Q4 2024-3.1%-5.0%-14.6%
Q3 2024-4.7%-5.6%+1.0%
Q2 2024-10.6%-17.7%-13.6%
Q1 2024-1.6%-6.9%+1.8%
Q4 2023-8.0%-13.9%-8.5%
Q3 2023-2.3%-0.1%+6.5%
Q2 2023+2.1%+1.7%+1.4%
Q1 2023+8.0%+4.1%+3.7%
Q4 2022+11.7%+10.0%+3.4%
Q3 2022+10.6%+5.8%+24.8%
Q2 2022+6.3%+9.5%+1.0%
Q1 2022+0.6%+6.1%+3.2%
Q4 2021-3.8%+0.1%-13.0%
Q3 2021+1.7%+1.7%-2.4%
Q2 2021+1.2%+3.6%+10.9%
Q1 2021+2.3%+7.8%+8.7%
Q4 2020+0.6%+2.5%+20.6%
Q3 2020-0.8%+4.5%+28.6%
Q2 2020-3.1%+0.7%+2.6%
Q1 2020-10.1%-12.4%+3.5%
Q4 2019-8.3%-7.9%-40.1%
Q3 2019-4.4%+3.3%-2.6%
Q2 2019-2.1%-14.0%-28.8%
Q1 2019-3.2%-1.9%-16.5%
Q4 2018+0.2%+7.1%-0.5%
Q3 2018-6.6%-5.1%-1.0%
Q2 2018-6.6%-5.0%-8.7%
Q1 2018+2.7%+6.8%+8.4%
Q4 2017-3.0%-5.1%-10.2%
Q3 2017-3.9%-1.1%+0.2%
Q2 2017-4.5%+0.2%-2.1%
Q1 2017-5.8%-5.2%-3.7%
Q4 2016-1.8%-5.2%-6.5%
Q3 2016-5.2%-4.1%+28.2%
Q2 2016-3.3%+1.5%+0.6%
Q1 2016-1.9%
Q4 2015+8.1%
Q3 2015-0.8%
Q2 2015+0.5%
Q1 2015-1.6%
Q4 2014+6.6%
Q3 2014-10.2%
Q2 2014-7.6%
Q1 2014-0.3%
Q4 2013-3.9%
Q3 2013+0.9%
Q2 2013-3.8%
Q1 2013+1.5%
Q4 2012-7.0%
Q3 2012-5.5%
Q2 2012+26.7%
Q1 2012+2.6%
Q4 2011-2.3%
Q3 2011-0.2%
Q2 2011-10.6%
Q1 2011+1.6%
Q4 2010-7.5%
Q3 2010+3.3%
Q2 2010+7.5%
Q1 2009+1.3%
Q1 2010+6.7%
Q4 2009-2.4%
Q4 2007-2.4%
Q3 2009-2.6%
Q3 2008-2.6%
Q2 2008+8.0%
Q2 2009+8.0%
Q4 2008+8.0%

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