Astec Industries (NASDAQ:ASTE) Shares Gap Down Following Weak Earnings

Key Points

• Astec Industries shares fell sharply, opening at $47.53 versus a prior close of $52.25, after quarterly earnings missed expectations.
• The company reported earnings per share of $0.94, below the $1.04 consensus estimate, while revenue of $408.1 million slightly exceeded forecasts. Net margin was 1.75% and return on equity was 10.09%.
• Astec declared a quarterly dividend of $0.13 per share, equivalent to $0.52 annually and a 1.1% yield. Analysts remain broadly positive with a consensus “Buy” rating, despite some recent downgrades to “Hold.”

Astec Industries, Inc. (NASDAQ:ASTE - Get Free Report)'s stock price gapped down prior to trading on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $52.25, but opened at $47.53. Astec Industries shares last traded at $47.01, with a volume of 116,179 shares traded.

The industrial products company reported $0.94 earnings per share for the quarter, missing the consensus estimate of $1.04 by ($0.10). Astec Industries had a return on equity of 10.09% and a net margin of 1.75%.The business had revenue of $408.10 million for the quarter, compared to analyst estimates of $405.50 million. During the same period in the previous year, the company earned $0.72 earnings per share.

Astec Industries Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Monday, August 10th will be given a dividend of $0.13 per share. The ex-dividend date is Monday, August 10th. This represents a $0.52 dividend on an annualized basis and a yield of 1.1%. Astec Industries's dividend payout ratio is currently 46.43%.

Analyst Ratings Changes

ASTE has been the topic of several research analyst reports. Wall Street Zen lowered shares of Astec Industries from a "buy" rating to a "hold" rating in a research report on Saturday, July 4th. Weiss Ratings downgraded shares of Astec Industries from a "hold (c+)" rating to a "hold (c)" rating in a research report on Thursday, May 7th. Finally, Zacks Research raised shares of Astec Industries from a "strong sell" rating to a "hold" rating in a research note on Monday, July 6th. Two equities research analysts have rated the stock with a Strong Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Buy".

Institutional Investors Weigh In On Astec Industries

Hedge funds have recently modified their holdings of the business. Assenagon Asset Management S.A. boosted its position in Astec Industries by 2,165.0% during the second quarter. Assenagon Asset Management S.A. now owns 146,796 shares of the industrial products company's stock worth $8,982,000 after acquiring an additional 140,315 shares during the last quarter. Bank of America Corp DE grew its stake in Astec Industries by 64.3% during the 1st quarter. Bank of America Corp DE now owns 93,365 shares of the industrial products company's stock valued at $5,027,000 after acquiring an additional 36,526 shares in the last quarter. The Manufacturers Life Insurance Company raised its holdings in Astec Industries by 41.6% in the 1st quarter. The Manufacturers Life Insurance Company now owns 9,703 shares of the industrial products company's stock valued at $522,000 after acquiring an additional 2,849 shares during the last quarter. Maverick Capital Ltd. acquired a new stake in Astec Industries in the 1st quarter valued at about $510,000. Finally, Quantinno Capital Management LP lifted its stake in Astec Industries by 73.2% in the 1st quarter. Quantinno Capital Management LP now owns 16,696 shares of the industrial products company's stock worth $899,000 after purchasing an additional 7,059 shares in the last quarter. 93.16% of the stock is currently owned by institutional investors and hedge funds.

Astec Industries Price Performance

The firm has a market capitalization of $1.06 billion, a PE ratio of 41.07, a price-to-earnings-growth ratio of 1.32 and a beta of 1.36. The stock's 50 day simple moving average is $54.66 and its two-hundred day simple moving average is $54.89. The company has a debt-to-equity ratio of 0.54, a quick ratio of 1.00 and a current ratio of 2.34.

Astec Industries Company Profile

Astec Industries, Inc is a designer and manufacturer of specialized equipment for infrastructure-related markets. Headquartered in Chattanooga, Tennessee, the company develops, engineers and produces machinery for asphalt road-building, aggregate processing, concrete production, underground mining, landscaping and utility installation. Astec's product portfolio includes asphalt plants, portable crushers, conveyors, screening plants, mixers, continuous miners and related support equipment.

Organized into multiple operating segments—Roadbuilding; Aggregate & Mining; Energy; and Pavement Preservation & Maintenance—Astec Industries serves contractors and municipalities that build and maintain transportation, energy and utility networks.

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