Terex Earnings: An Early Look

Earnings season is in full swing, with huge numbers of companies having already given their latest numbers to investors, and Terex (NYSE: TEX  ) is about to release its quarterly earnings report. The key to making smart investment decisions with stocks releasing their quarter reports is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed, knee-jerk reaction to news that turns out to be exactly the wrong move.

The industrial machinery industry has been extremely sensitive to economic turmoil in the U.S. and overseas, and Terex has seen its prospects rise and fall with those of the global economy. Are recent signs of a rebound finally going to stick this time around? Let's take an early look at what's been happening with Terex over the past quarter and what we're likely to see in its quarterly report next Tuesday.

Stats on Terex

 

 

Analyst EPS Estimate

$0.40

Change From Year-Ago EPS

54%

Revenue Estimate

$1.83 billion

Change From Year-Ago Revenue

(6.4%)

Earnings Beats in Past 4 Quarters

4

Source: Yahoo! Finance.

Will Terex keep building itself up?
Analysts have had mixed views on Terex in the past few months. Looking back at the just-ended quarter, they've cut earnings-per-share estimates by a penny, but they've added more than a nickel to their full-year 2013 views. The stock, meanwhile, has been on a tear, rising 65% just since mid-November.

Until last quarter, Terex's had been stuck in a rut ever since late 2009. Several false starts on economic rebounds had met with setbacks, yet repeated episodes of optimism brought shares back from steep declines.

But even before the company announces its results, investors believe that Terex will blow analyst estimates out of the water. Back in January, Oshkosh (NYSE: OSK  ) reported huge revenue gains for its aerial work platform and boom lift segment, as revenue rose more than 15% on strong North American activity even as Oshkosh's defense segment sank heavily. On that day, Terex shares soared nearly 13% as investors concluded that the construction industry overall had turned the corner.

Moreover, signs of life in the global economy are boosting Terex's peers. Manitowoc (NYSE: MTW  ) has seen increased interest in its cranes, with the company beginning to expand more strongly in emerging markets and its shares surged after its report earlier this month. Meanwhile, Caterpillar (NYSE: CAT  ) and Joy Global (NYSE: JOY  ) have both suffered from weakness in the mining industry, but renewed activity there has raised optimism that industrial demand will lead to buyers finally pulling the trigger on long-delayed capital expenditures.

In Terex's earnings report, watch closely to see if the company boasts the same trends that have boosted the shares of its peers lately. With the prospect of more bullish times for the whole industry, a rising tide will lift all boats, including Terex, as long as it doesn't buck the trend with a company-specific problem.

Terex vs. Caterpillar: which is the better buy?
Despite Terex's recent success, Caterpillar's unparalleled brand give it a huge competitive edge. But does that make Caterpillar a buy? Find out in our research report on the stock, inw hich we detail Caterpillar's strengths and weaknesses. Just click here to access it now.

Click here to add Terex to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.


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