As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the heavy machinery industry, including Astec (NASDAQ:ASTE) and its peers.
Automation that increases efficiencies and connected equipment that collects analyzable data have been trending, creating new demand for heavy machinery and equipment companies. The gradual transition to clean energy also allows companies to innovate around emissions, potentially spurring replacement cycles that can accelerate revenue growth. On the other hand, heavy machinery companies are at the whim of economic cycles. Interest rates, for example, can greatly impact the commercial and residential construction that drives demand for these companies’ offerings.
The 21 heavy machinery stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 3.8% while next quarter’s revenue guidance was in line.
While some heavy machinery stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.8% since the latest earnings results.
Inventing the first ever double-barrel hot-mix asphalt plant, Astec (NASDAQ:ASTE) provides machines and equipment for building roads, processing raw materials, and producing concrete.
Astec reported revenues of $400.6 million, up 11.6% year on year. This print exceeded analysts’ expectations by 7.1%. Overall, it was an incredible quarter for the company with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Unsurprisingly, the stock is down 8.2% since reporting and currently trades at $53.72.
Is now the time to buy Astec? Access our full analysis of the earnings results here, it’s free.
Once manufacturing snowplows designed for the iconic jeep vehicle precursor, Douglas Dynamics (NYSE:PLOW) offers snow and ice equipment for the roads and sidewalks.
Douglas Dynamics reported revenues of $184.5 million, up 28.6% year on year, outperforming analysts’ expectations by 8.6%. The business had an incredible quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates.
Douglas Dynamics scored the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 1.6% since reporting. It currently trades at $41.98.
Is now the time to buy Douglas Dynamics? Access our full analysis of the earnings results here, it’s free.