Astec Industries (ASTE) Misses Q1 EPS by 19c, Revenues Miss

Astec Industries (NASDAQ: ASTE) reported Q1 EPS of $0.63, $0.19 worse than the analyst estimate of $0.82. Revenue for the quarter came in at $325.8 million versus the consensus estimate of $338.66 million.

Commenting on the announcement of the quarterly results, Richard J. Dorris, Interim Chief Executive Officer, stated, “We are disappointed that our performance in the first quarter did not meet our expectations. All three segments experienced pricing pressure from competitors in a tighter market and temporary weather related shutdowns at seven of our subsidiaries impacted our ability to build and ship equipment.”

Mr. Dorris continued, “Lower than expected volumes impacted our gross margins at several of our subsidiaries. As we’ve previously discussed, our SGA&E is also temporarily at a higher run rate than normal due to our ongoing strategic sourcing project. Bookings were also affected by the weather as customers were unable to work in unusually wet or icy conditions in much of the U.S.”

Mr. Dorris concluded, “While we are paying close attention to the decrease in our backlog, we note that we experienced historical high points in our backlogs in the first quarter of 2018. We have already made a number of moves to adjust our capacity and, while we’ve seen some positive developments in recent order intake, we will continue to monitor the backlog and make adjustments where necessary.”

For earnings history and earnings-related data on Astec Industries (ASTE) click here.

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