There is no way to spin the Terex (NYSE:TEX): In the short term they're a mess, as the recent quarterly results and resultant downgrade from Standpoint Research points to.
Standpoint downgraded the equipment maker from "Buy" to "Sell."
"Terex shares were nearing a two-year high before the (lack of) earnings announcement this morning. The shares are down 4% in light pre-market trading. Although the shares are trading at low multiples on earnings from 2005 (10X), 2006 (6X), 2007 (4X) and 2008 (4X), the company is not profitable at this time and it may take a couple of years before they match the $2.43 figure from 2005. We will not see them match the numbers from 2006 ($4.05), 2007 ($5.93) or 2008 ($5.64) any time soon. This was a $90 stock three years ago, but in my opinion it may take two years before we see the share price back at $30 … and we may very well break $20 to the downside before then. There are better risk-reward situations in the sector at this time. TEX has disappointed repeatedly in recent years and the announcement today was no exception. Annual revenues are now down below $5 bln … that is more than 50% off the $10 bln sales figure posted just two years ago," said Standpoint.
Terex lost $89.2 million in the quarter, dropping to $0.82 a share. Analysts had been looking for a loss of $0.15, to show how badly they missed.
There is nothing much short term to be excited about with Terex. But when measured against rivals Deere (NYSE:DE), CNH Global (NYSE:CNH) and Caterpillar (NYSE:CAT), they will trade at even a larger discount than before, offering a possible lucrative buying opportunity for the long term.
Showing posts with label Terex. Show all posts
Showing posts with label Terex. Show all posts
Friday, October 22, 2010
Bucyrus (Nasdaq:BUCY) Plunges After Missing Big Time
Bucyrus (Nasdaq:BUCY) missed estimates by a huge margin in its last quarter, as a major slowdown in underground mining equipment hampered the company.
Revenue for the quarter increased to $937.16 million, a major improvement over the $675.8 million generated last year in the same quarter, but far below the $1.03 billion analysts were looking for.
Earnings per share were down big also, coming in at $0.94 on earnings of $77.6 million, far off the $1.10 per share the Street projected. Last year the company did better in the same quarter with earnings of $92.1 million, or $1.21 a share.
Underground mining sales were $209.7 million, falling 3 percent on the quarter.
Some of the results were also from the acquisition of the mining equipment business of Terex (NYSE:TEX), although it didn't account for all the poor numbers.
After hours the stock was at $70.00, falling $3.51, or 4.77 percent at 7:58 PM EDT.
Revenue for the quarter increased to $937.16 million, a major improvement over the $675.8 million generated last year in the same quarter, but far below the $1.03 billion analysts were looking for.
Earnings per share were down big also, coming in at $0.94 on earnings of $77.6 million, far off the $1.10 per share the Street projected. Last year the company did better in the same quarter with earnings of $92.1 million, or $1.21 a share.
Underground mining sales were $209.7 million, falling 3 percent on the quarter.
Some of the results were also from the acquisition of the mining equipment business of Terex (NYSE:TEX), although it didn't account for all the poor numbers.
After hours the stock was at $70.00, falling $3.51, or 4.77 percent at 7:58 PM EDT.
Tuesday, October 5, 2010
Caterpillar (NYSE:CAT), Deere (NYSE:DE), Cummins (NYSE:CMI), AGCO (Nasdaq:AGCO) and Eaton (NYSE:ETN) among Favorites of Barclays (NYSE:BCS) for Brazil Exposure
In their recent research trip to Brazil concerning building out their infrastructure, Barclays (NYSE:BCS) came away with several favorites in the machinery sector serving the build-out, including Caterpillar (NYSE:CAT), Cummins (NYSE:CMI), Deere (NYSE:DE), AGCO (Nasdaq:AGCO) and Eaton (NYSE:ETN)
The two favorites of Barclays in the entire group are Caterpillar and CMI.
Overall, Barclays said after talking to these and many other players in Brazilian infrastructure projects, the feeling is things are picking up and those companies with large exposure should reap strong rewards going forward, as expenditures are increasing.
Brazil has been overshadowed by China and to a lesser extent India recently, and it may be their time to shine as significant capital is generated from a variety of energy sectors and projects.
Other companies they met with in the equipment industry were Terex (NYSE:TEX) and Bucyrus International (Nasdaq:BUCY).
The two favorites of Barclays in the entire group are Caterpillar and CMI.
Overall, Barclays said after talking to these and many other players in Brazilian infrastructure projects, the feeling is things are picking up and those companies with large exposure should reap strong rewards going forward, as expenditures are increasing.
Brazil has been overshadowed by China and to a lesser extent India recently, and it may be their time to shine as significant capital is generated from a variety of energy sectors and projects.
Other companies they met with in the equipment industry were Terex (NYSE:TEX) and Bucyrus International (Nasdaq:BUCY).
Bucyrus (Nasdaq:BUCY) Retains "Overweight" from Barclays (NYSE:BCS)
Bucyrus International (Nasdaq:BUCY) had its "Overweight" rating from Barclays (NYSE:BCS) maintained on them, citing higher revenue and margins from business with Terex Mining (NYSE:TEX)
"We raise our BUCY price target to $80 given our increased revenue and margin assumptions for Terex Mining (NYSE:TEX). Following recent meetings with BUCY and Vale management in South America, we see revenue/operating margin upside from TEX vs. our previous assumptions. We now forecast 2011 pro-forma revenue growth of - 25 percent for TEX vs. our prior - 12 percent and operating margin of 14.7 percent vs. our prior 13.6 percent, which added $0.30 to our prior 2011 EPS estimate," said Barclays.
Bucyrus closed at $68.71, down $1.18, or 1.69 percent. Barclays has a price target $80 on Bucyrus, raising it from $75.
"We raise our BUCY price target to $80 given our increased revenue and margin assumptions for Terex Mining (NYSE:TEX). Following recent meetings with BUCY and Vale management in South America, we see revenue/operating margin upside from TEX vs. our previous assumptions. We now forecast 2011 pro-forma revenue growth of - 25 percent for TEX vs. our prior - 12 percent and operating margin of 14.7 percent vs. our prior 13.6 percent, which added $0.30 to our prior 2011 EPS estimate," said Barclays.
Bucyrus closed at $68.71, down $1.18, or 1.69 percent. Barclays has a price target $80 on Bucyrus, raising it from $75.
Wednesday, March 3, 2010
JPMorgan (NYSE:JPM): Terex (NYSE:TEX) for Sale?
Terex for Sale?
Analysts at JPMorgan said that Terex Corp. (NYSE:TEX) could be offering itself for sale, generating strong movements in the price of the shares of the stock.
This comes on the heals of Terex selling its highly profitable mining equipment business last month to Bucyrus International for $1.3 billion.
With the mining equipment business being its most consistent performer, it was highly criticized when they sold the unit, probably what has generated the idea the entire company may be for sale, or parts of the company which make the rest of the whole.
Considering the mining industry should boom for years to come, it didn't make much sense when Terex CEO Ron DeFeo said it was a first step in transforming Terex into a more diverse company which manufactures niche industrial products and machinery.
The construction side of the equation is easy to understand, but the mining part makes little sense, unless it had to be included in the recent sale to make the deal happen.
Terex for Sale?
Analysts at JPMorgan said that Terex Corp. (NYSE:TEX) could be offering itself for sale, generating strong movements in the price of the shares of the stock.
This comes on the heals of Terex selling its highly profitable mining equipment business last month to Bucyrus International for $1.3 billion.
With the mining equipment business being its most consistent performer, it was highly criticized when they sold the unit, probably what has generated the idea the entire company may be for sale, or parts of the company which make the rest of the whole.
Considering the mining industry should boom for years to come, it didn't make much sense when Terex CEO Ron DeFeo said it was a first step in transforming Terex into a more diverse company which manufactures niche industrial products and machinery.
The construction side of the equation is easy to understand, but the mining part makes little sense, unless it had to be included in the recent sale to make the deal happen.
Terex for Sale?
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