NYSE$TEX

Terex Corporation · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Terex reported Q4 2020 earnings and reinstated quarterly dividend.

Terex Corporation announced Q4 2020 income from continuing operations of $14.9 million, or $0.21 per share, on net sales of $786.7 million. The company reinstated its quarterly dividend for 2021 at $0.12 per share.

  • Terex delivered another quarter of improving operating performance despite the challenges associated with the pandemic.
  • The company generated over $140 million of free cash flow in 2020 through aggressive working capital management.
  • Terex entered 2021 in a very strong financial position, with $670 million of cash and over $1.1 billion of total available liquidity.
  • Expectations are that 2021 sales will be approximately $3.45 billion, and EPS will be approximately $1.95 to $2.35.

Headline financials

Total Revenue

$787M

Previous: $885M-11.1%
EPS (adj)

$0.21

Previous: $0.36-41.7%
Free Cash Flow

$141M

No prior period
Net Income

$17.7M

Previous: $24.5M-27.8%
Operating Income

$31.6M

Previous: $22.9M+38.0%
Gross Profit

$149M

Previous: $169M-11.5%
Cash & Equivalents

$665M

Previous: $535M+24.3%
Total Assets

$3.03B

Previous: $3.2B-5.1%
Stock-Based Comp

$6M

Previous: $11.6M-48.3%

Revenue & EPS history

Terex · Revenue · Quarterly

$787M

Q4 2020-11.1%vs Q4 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Terex · $366M total across 1 segment · Q4 2020

  • Materials Processing
    $366M+14.1%

Forward guidance

Terex expects 2021 sales to be approximately $3.45 billion, and EPS to be approximately $1.95 to $2.35.

Tailwinds

  • Renewed optimism and improved customer sentiment will drive customer demand for Terex’s products and services.
  • The company is well positioned with its operating strategy to drive improved execution, profitability, innovation and growth in 2021.
  • The company will continue to deliver to our customers innovative products and solutions that yield superior productivity and return on investment.
  • Aggressive working capital management.
  • Disciplined liquidity management.

Headwinds

  • Business could be further adversely impacted by global health pandemics such as the outbreak of a new strain of coronavirus (“COVID-19”).
  • Business is highly competitive and is affected by cost structure, pricing, product initiatives and other actions taken by competitors.
  • Dependence upon third-party suppliers, making vulnerable to supply shortages and price increases.
  • Operations are subject to a number of potential risks that arise from operating a multinational business, including compliance with changing regulatory environments and political instability.
  • Material disruption to one of significant facilities.

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 2020

Historical avgQ4 2020

-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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