Astec Industries, Inc. - Value
29 8월 2011 - 9:00AM
Zacks
Astec Industries, Inc. (ASTE) recently surprised on the
Zacks Consensus Estimate for the 6th quarter in a row. Sales also
jumped 18.5% in Q2. This Zacks #1 Rank (strong buy) is undervalued
with a price-to-sales ratio of just 0.8.
Astec is at the center of the global recovery.
Headquartered in Tennessee, the company makes specialized equipment
for building and restoring the world's infrastructure, including
asphalt road building, pipeline and utility trenching and wood
processing.
It operates four segments: aggregate processing and
mining equipment; asphalt production equipment; mobile asphalt
paving equipment; and underground boring, directional drilling and
trenching equipment.
Expanding In Energy Services
On Aug 4, Astec announced it was acquiring all of
the assets of the GEFCO and STECO divisions of Blue Tee Corporation
for $26 million. GEFCO makes portable drilling rigs and related
equipment for the water well, environmental, construction and
shallow oil and gas explorers and producers.
STECO makes transfer and dump trailers for the
solid waste, scrap processing, construction and demolition
industries. It is a pioneer in the production of hydraulic dump
trailers.
The acquisition is expected to enhance the
companyy's current line of gas and oil drilling equipment and
directional drills.
The deal is expected to close in the fourth
quarter.
Astec Beat Again in the Second Quarter
On July 25, Astec reported its second quarter
results and suprised on the Zacks Consensus Estimate by a penny.
But a beat is a beat.
Earnings per share were 61 cents compared to the
Zacks Consensus of 60 cents. The company made just 45 cents per
share in the year ago quarter.
Revenue surged 18.5% to $247.8 million, up from
$209.2 million last year. The quarter was boosted by international
sales which climbed to 43.7% of total sales, up from 38.2% last
year. International sales also jumped 26% to $108.3 million from
$80 million in the year ago quarter.
Domestic sales were also higher, rising to $139.5
million from $129.2 million last year.
The backlog is showing no signs of slowing down. It
grew to $217.1 million as of June 30 from $139.7 million, up 55.4%,
from last year. Both domestic and international backlogs rose, with
the domestic climbing 64.2% and international increasing 49.2%.
What Conditions Look Like
The company was pleased with its second quarter
performance even as "tough" economic conditions continue to
persist.
It is seeing caution in its domestic customers due
to uncertainty over the deficits and the lack of a long-term
highway bill.
Analysts Still Bullish
Astec didn't provide any 2011 guidance, but the
analysts were bullish after the second quarter report.
The 2011 Zacks Consensus rose 8 cents to $2.04 per
share. That is earnigns growth of 44% as the company made just
$1.42 in 2010. Not too shabby given the "tough" conditions.
Astec Is a Value Stock
Shares have come down sharply in the recent market
sell off.
![](http://www.zacks.com/images/upload_dir/1314387411.jpg)
This has pushed the stock into value territory.
In addition to a P/S ratio under 1, which indicates
value, Astec has a forward P/E of 14.9, which is just under the 15x
cut-off I use for value stocks.
It also has a price-to-book of 1.3, well under the
3.0 limit many use for value.
Astec is one of those rare value stocks that also
has double digit earnings growth.
Tracey Ryniec is the Value Stock Strategist for
Zacks.com. She is also the Editor of the Turnaround Trader and
Insider Trader services. You can follow her at
twitter.com/traceyryniec.
ASTEC INDS INC (ASTE): Free Stock Analysis Report
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Astec Industries (NASDAQ:ASTE)
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