Overview

* Astec Q2 net sales fall 4.4% yr/yr, missing analyst expectations

* Adjusted EPS for Q2 beats consensus, reflecting improved operational efficiency

* Co completes acquisition of TerraSource, expected to boost future earnings

Outlook

* Astec updates full-year adjusted EBITDA guidance to $123 mln-$142 mln

* Company expects TerraSource to contribute $13 mln-$17 mln in H2 adjusted EBITDA

Result Drivers

* INFRASTRUCTURE CHALLENGES - Net sales in Infrastructure Solutions fell 7.6% due to weak demand for mobile paving and forestry equipment

* OPERATIONAL EFFICIENCIES - Co attributes growth in adjusted EBITDA and EPS to enhanced manufacturing and procurement efficiencies

* TERRASOURCE ACQUISITION - Acquisition completed, expected to boost earnings with strong aftermarket parts revenue

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Miss $330.30 $354.20

mln mln (2

Analysts

)

Q2 Beat $0.88 $0.56 (2

Adjusted Analysts

EPS )

Q2 $29 mln

Adjusted

EBITDA

Q2 8.8%

Adjusted

EBITDA

Margin

Q2 7.9%

Adjusted

Operatin

g margin

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the heavy machinery & vehicles peer group is "buy"

* Wall Street's median 12-month price target for Astec Industries Inc ( ASTE ) is $43.00, about 6.1% above its August 5 closing price of $40.39

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

Press Release:

(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.)