The 10-second takeaway
For the quarter ended June 30 (Q2), Terex met expectations on revenue and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share improved.
Margins grew across the board.
Terex chalked up revenue of $2.01 billion. The 14 analysts polled by S&P Capital IQ predicted a top line of $2.02 billion on the same basis. GAAP reported sales were 35% higher than the prior-year quarter's $1.49 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.76. The 18 earnings estimates compiled by S&P Capital IQ averaged $0.50 per share. GAAP EPS of $0.77 for Q2 were much higher than the prior-year quarter's $0.00 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 21.3%, 610 basis points better than the prior-year quarter. Operating margin was 8.7%, 720 basis points better than the prior-year quarter. Net margin was 4.3%, 430 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.05 billion. On the bottom line, the average EPS estimate is $0.52.
Next year's average estimate for revenue is $7.94 billion. The average EPS estimate is $1.78.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Terex is outperform, with an average price target of $29.21.
Over the decades, small-cap stocks like Terex have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Terex to My Watchlist.