Astec Industries Earnings:Here’s Why Investors are Not Happy Now
Astec Industries, Inc. (NASDAQ:ASTE) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.17%.
Astec Industries, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 14.63% to $0.47 in the quarter versus EPS of $0.41 in the year-earlier quarter.
Revenue: Decreased 13.51% to $227.6 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Astec Industries, Inc. reported adjusted EPS income of $0.47 per share. By that measure, the company beat the mean analyst estimate of $0.38. It missed the average revenue estimate of $247.7 million.
Quoting Management: Commenting on the announcement, Dr. J. Don Brock, Chairman and Chief Executive Officer, stated, “2012 has been a year of uncertainty for the U.S. economy. Although Congress finally passed a new 27-month Federal highway funding bill in July, it was too late in the 2012 construction season to have an impact. Without the certainty of Federal infrastructure spending, many of our customers were reluctant to make capital expenditures. With the Federal highway funding bill in place we hope to see the release of some of the pent up demand in preparation for the 2013 construction season. In spite of the uncertainty in the general economy, we continued to develop new and innovative products, expand our markets and develop more efficient ways to build our products.”
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