Terex earnings: what to look for from TEX

What happened

Terex, a lifting and material handling equipment company, reports results Wednesday morning. Last quarter it reported revenues of $2.24 billion, up 50.5% year on year, beating revenue, EBITDA and EPS estimates. This quarter the market expects revenue to grow 56.6% year on year.

Confirmed

Global impact / market context

Terex has missed Wall Street revenue estimates several times in two years, so this report tests whether rapid growth is reliable. A miss could hurt investor confidence, while a beat may support the stock. Peers Lindsay and Wabtec showed mixed results, suggesting demand varies across heavy machinery.

Analyst inference

Analysts reconfirmed estimates in the last 30 days, suggesting they expect the business to stay its course. Lindsay beat revenue expectations and its stock was unchanged, while Wabtec fell short and its stock fell 2.4%. This shows investors react to whether results beat or miss forecasts.

Analyst inference

What to watch

1. Watch whether Terex revenue grows near the 56.6% year-on-year expectation, and whether it finally beats Wall Street estimates after multiple misses over the last two years. Confirmed
2. Watch whether analysts keep their estimates unchanged after the results, since they reconfirmed them over the last 30 days and expect the business to stay its course. Proposed
3. Watch Lindsay and Wabtec results as hints for heavy machinery demand, since Lindsay beat expectations by 7.3% and Wabtec fell short by 2.6%. Analyst inference

Evidence

• stockstory.org