Overview

* Astec Q3 net sales rise 20.1% yr/yr, beating analyst expectations

* Adjusted EPS for Q3 beats consensus, reflecting operational advancements

* Company reports 55.7% increase in adjusted EBITDA, driven by TerraSource acquisition

Outlook

* Astec raises lower end of full-year adjusted EBITDA guidance to $132 mln

* Company maintains upper end of full-year adjusted EBITDA guidance at $142 mln

Result Drivers

* TERRASOURCE ACQUISITION - Acquisition of TerraSource contributed significantly to net sales and adjusted EBITDA growth

* INFRASTRUCTURE DEMAND - Strong demand for asphalt and concrete plants boosted Infrastructure Solutions sales by 17.1%

* OPERATIONAL EFFICIENCIES - Manufacturing and procurement efficiencies improved profitability, per CEO Jaco van der Merwe

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Beat $350.10 $330.91

mln mln (2

Analysts

)

Q3 Beat $0.47 $0.38 (2

Adjusted Analysts

EPS )

Q3 EPS -$0.18

Q3 $27.10

Adjusted mln

EBITDA

Analyst Coverage

* The one available analyst rating on the shares is "strong buy"

* Wall Street's median 12-month price target for Astec Industries Inc ( ASTE ) is $54.50, about 14.8% above its November 4 closing price of $46.41

* The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)