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The Gory Details on Terex's Double Fumble

By Seth Jayson - Updated Apr 10, 2017 at 1:42PM

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Just the facts, Fool.

Terex (NYSE: TEX) reported earnings on April 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Terex missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share shrank significantly. GAAP earnings per share increased.

Gross margins expanded, operating margins contracted, net margins increased.

Revenue details
Terex recorded revenue of $1.72 billion. The 13 analysts polled by S&P Capital IQ foresaw sales of $1.82 billion on the same basis. GAAP reported sales were 5.3% lower than the prior-year quarter's $1.82 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.23. The 16 earnings estimates compiled by S&P Capital IQ averaged $0.29 per share. Non-GAAP EPS of $0.23 for Q1 were 26% lower than the prior-year quarter's $0.31 per share. (The prior-year quarter included $0.02 per share in earnings from discontinued operations.) GAAP EPS of $0.21 for Q1 were 5.0% higher than the prior-year quarter's $0.20 per share. (The prior-year quarter included $0.02 per share in earnings from discontinued operations.)

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 19.0%, 80 basis points better than the prior-year quarter. Operating margin was 4.0%, 20 basis points worse than the prior-year quarter. Net margin was 1.4%, 10 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $2.19 billion. On the bottom line, the average EPS estimate is $0.86.

Next year's average estimate for revenue is $8.04 billion. The average EPS estimate is $2.61.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Terex is outperform, with an average price target of $37.88.

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Stocks Mentioned

Terex Corporation Stock Quote
Terex Corporation
TEX
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