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Astec Industries, Inc. (NASDAQ:ASTE) Upbeats Earnings Thrashing Estimates

Posted in Industrial Goods1 year ago • Written by Ryder JessicaNo Comments

Dallas, Texas, 03/11/2014 (ustrademedia) –  Recent Announcement: Astec Industries, Inc.(NASDAQ:ASTE) recently announced its Q413 and FY13 results, which appeared to have out beaten the expectations of the analysts.

Earning outgrow despite fall in revenue: During the Q4 2013, the net sales declined by 2% to $223.9 million compared to $227.6 million during the previous year quarter. The domestic sales rose by 10% to $142.4 million  and international sales rose by 17% to $81.5 million compared to its fourth quarter in 2012.The net earnings increased by 51% to $8.3 million or $0.36 per share compared to its previous year’s quarter of $5.5 million or $0.24 per share. The increase was mainly attributed to lower tax rate and increase in other income.

Full Year performance: For the full year, net sales decreased by $3.3 million to $933 million, comprising of 5% increase in domestic market sales to $599.1 million and 8% decrease in its international sales to $333.9 million. However the net earnings rose by 15% to $39 million or $1.69 per share in comparison to its  previous year. The company’s domestic backlog increased by 28% where as in international backlog, it reduced by 16%, however total backlog increased by 10% for the whole year.

Company’s Outlook: One of its key customer in Georgia has recently ordered two more additional lines for $40 million during the last quarter. The company extends its plan to work on Underground group which had performed poor during the year due to lowering demand for its product. The company look forward for more acquisitions in the coming years.

Insider sale: Last week, its chairman J Don Brock had sold his 13,000 Astec shares in the open market at a average price of $40.53 per share, totalling its transaction to $526,890. This transaction was filed in SEC.

Expectation hiked: Analysts have also upgraded their recommendations on this stock. UK government had recently approved tax credit for utilities that are used as a source of fuel and swap to wood plants from coal fired plants, in which Astec specializes, hence brings in more opportunity for the company.

Strong Yields: The company also declared, whose record date being March 10th(Ex-dividend being March 6th), of $0.10 per share. This corresponds to $0.40 dividend on annualized basis with a yield of 0.97%.

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