News

Terex Corporation TEX reported first-quarter 2024 adjusted earnings per share of $1.60, which beat the Zacks Consensus Estimate of $1.37. The bottom line was flat year over year.

Operational Update

Revenues in the reported quarter increased 4.6% year over year to $1.29 billion, surpassing the Zacks Consensus Estimate of $1.23 billion. The year-over-year upside was driven by healthy demand across multiple businesses.
The cost of goods sold increased 4% year over year to $995 million. Gross profit improved 6.7% to $297 million.

Selling, general and administrative expenses (SG&A) were $139 million in the quarter under review, up 6.1% from the prior-year quarter. Terex reported an operating profit of $158 million, which marked a 7.2% increase from the prior-year quarter.

Terex Corporation Price, Consensus and EPS Surprise

Segmental Performances

The Aerial Work Platforms segment generated revenues of around $773 million in the reported quarter, up 12.7% from the year-ago quarter. Our estimate for the segment’s revenues was $691 million. The top line was driven by higher demand, and improved supply chain and manufacturing performance. The segment reported an operating profit of $107.3 million compared with the prior-year quarter’s $83.1 million.

The Material Processing segment’s revenues totaled $520 million, reflecting a year-over-year decline of 6.1%. Our estimate for the segment’s revenues was $531 million. The segment reported an operating income of $72.1 million, slipping 15.5%. The downside was driven by lower sales volume and a net unfavorable product mix.

Financial Position

Terex had cash and cash equivalents of $365 million as of Mar 31, 2024, compared with $371 million as of Dec 31, 2023. The company used $33.9 million of cash from operating activities in 2022 against an inflow of $9.1 million in the prior-year quarter.

2024 Outlook

Backed by the strong performance in the first quarter, Terex raised its 2024 outlook. The company expects earnings per share between $6.95 and $7.35, up from the previously disclosed $6.85-$7.25. The company expects sales between $5.2 billion and $5.4 billion compared with the earlier stated $5.1-$5.3 billion.

Terex's shares have gained 29.5% over the past year compared with the industry’s growth of 54%.

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Zacks Rank

Terex currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performances of Other Industrial Products Companies

Caterpillar Inc. CAT reported first-quarter 2024 adjusted earnings per share of $5.60, which beat the Zacks Consensus Estimate of $5.12 by a margin of 9%. The bottom-line figure marked a 14% year-over-year improvement.

The company reported first-quarter revenues of $15.8 billion, which missed the Zacks Consensus Estimate of $16.1 billion. The top line was flat with the year-ago quarter as favorable price realization was offset by lower volumes. Caterpillar witnessed lower sales of equipment to end users.

Ball Corporation BALL reported first-quarter 2024 adjusted earnings of 68 cents per share, beating the Zacks Consensus Estimate of 56 cents. The bottom line declined 1% year over year. The downside was driven by lower volumes across most segments.

Total sales were $2.87 billion in the reported quarter compared with $2.98 billion (the figure is exclusive of the company's former aerospace business) in the year-ago quarter. The top line missed the Zacks Consensus Estimate of $3.18 billion. Global beverage can shipments moved up 3.7%.

W.W. Grainger, Inc. GWW reported earnings per share of $9.62 in first-quarter 2024, beating the Zacks Consensus Estimate of $9.58. The bottom line improved 0.1% year over year.

Grainger’s quarterly revenues rose 3.5% year over year to $4.24 billion. The top line missed the Zacks Consensus Estimate of $4.27 billion. Daily sales increased 3.5% from the prior-year quarter. We predicted daily sales to increase 4.2%.

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