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Terex (TEX) to Report Q3 Earnings: What's in the Cards?

Terex's (TEX) Q3 results are likely to reflect benefits from solid end-market demand and cost-control actions in response to surging input costs.

This story originally appeared on Zacks

Terex Corporation TEX is scheduled to report third-quarter 2021 results on Oct 28, after the market closes.

- Zacks

Q3 Estimates

The Zacks Consensus Estimate for the third-quarter revenues is pegged at $1.03 billion, suggesting growth of 34.4% from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for quarterly earnings currently stands at 74 cents per share, suggesting growth of 138.7% from the prior-year period’s reported number.

Q2 Performance

Terex’s second-quarter earnings and sales beat the respective Zacks Consensus Estimate and increased year over year. The company has a trailing four-quarter earnings surprise of 307.3%, on average.

Key Factors to Note

Terex’s third-quarter performance is likely to have benefited from robust booking and backlogs across its segments, strong customer demand as well as cost-reduction actions.

The Zacks Consensus Estimate for the Aerial Work Platforms segment’s third-quarter net sales is pegged at $588 million, calling for growth of 32.1% from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for the segment’s operating income is pegged at $42.1 million, implying an improvement from the prior year quarter’s $13.3 million. The segment is expected to have benefited from solid global demand for fleet replacement.

In the Genie business, globally, rental rates are rising, used equipment pricing remains strong and fleet utilization continues to improve on the recovering aerials rental industry. The Utilities market is improving significantly, aided by strong demand across its end-markets of tree care, rental and investor-owned utilities. These tailwinds might contribute to the segment’s results for the September quarter.

The Zacks Consensus Estimate for the Material Processing segment’s net sales is pegged at $443 million for the July-September period, indicating an improvement of 42.4% from the year-earlier quarter’s actuals. The Zacks Consensus Estimate for the segment’s operating income stands at $59 million, suggesting growth of 46.4% from the year-ago period’s reported number.

Robust end-market demand across minerals processing, material handling and lifting, environmental and concrete are likely to have driven the segment’s performance in the to-be-reported quarter. Also, a solid product pipeline, expansion into newer geographies, delivery of innovative products and a continued strong execution augur well for the segment.

Higher input costs, primarily of steel, might have unfavorably impacted the company’s margin in the period under review.

Terex Corporation Price and EPS Surprise

Terex Corporation Price and EPS Surprise

Terex Corporation price-eps-surprise | Terex Corporation Quote

What the Zacks Model Indicates

Our proven model doesn’t conclusively predict an earnings beat for Terex this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Terex has an Earnings ESP of -4.18%.

Zacks Rank: Terex currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank stocks here.

Price Performance

Over the past year, shares of Terex have gained 77.9% compared with the industry’s growth of 27.2%.

Zacks Investment ResearchImage Source: Zacks Investment Research

Stocks Poised to Beat Earnings Estimates

Here are some Industrial Products stocks worth considering as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases.

Reliance Steel & Aluminum Co RS has an Earnings ESP of +3.54% and a Zacks Rank of 1 at present.

Columbus McKinnon Corporation CMCO has an Earnings ESP of +5.26% and a Zacks Rank #2, currently.

Deere & Company DE, currently a Zacks #2 Ranked stock, has an Earnings ESP of +5.55%.

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Terex Corporation (TEX): Free Stock Analysis Report


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