Terex (NYSE: TEX) will unveil its latest earnings on Wednesday, July 20. Terex is a global manufacturer of capital equipment focused on delivering reliable, customer-relevant solutions for the construction, infrastructure, quarrying, surface mining, shipping, transportation, power, and energy industries.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on Terex, with 12 of 19 analysts rating it hold. Analysts don't like Terex as much as competitor Astec Industries overall. Five out of 11 analysts rate Astec Industries a buy, compared with seven of 19 for Terex. Analysts still rate the stock a hold, but they are a bit more wary about it compared with three months ago.
  • Revenue forecasts: On average, analysts predict $1.36 billion in revenue this quarter. That would represent a rise of 25.9% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.18 per share. Estimates range from $0.01 to $0.28.

What our community says:
CAPS All-Stars are solidly behind the stock, with 99.2% giving it an "outperform" rating. The community at large concurs with the All Stars, with 97% awarding it a rating of "outperform." Fools are bullish on Terex and haven't been shy with their opinions lately, logging 382 posts in the past 30 days. Even with a robust four out of five stars, Terex's CAPS rating falls a little short of the community's upbeat outlook.

Management:
Terex's income has fallen year over year by an average of 55.3%. The company's revenue has now risen for two straight quarters. It upped its gross margin by 2.8 percentage points in the last quarter. Revenue rose 34.2%, while cost of sales rose 30% to $1.09 billion from a year earlier.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters. 

Quarter Q1 Q4 Q3 Q2
Gross Margin 13.3% 14% 15.2% 14.3%
Operating Margin (0.7%) 0% 0.3% (1%)
Net Margin 0.9% (3.4%) (8.9%) (3.7%)
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