Shares of Astec Industries fell by more than 7.8 percent Tuesday to the lowest level in more than a year after the Chattanooga-based asphalt equipment maker reported a bigger-than-expected drop in earnings in the second quarter.
Astec boosted its sales by 3 percent over a year ago during the spring quarter, but net income dropped by 22 percent from a year ago and fell below analysts’ expectations.
Astec earned $14.4 million, or 62 cents per share, on sales of $301.9 million in the second quarter of 2017. A year ago in the same period, Astec earned $18.2 million, or 79 cents per share, on sales of $294.4 million.
The income results were 18 cents per share below the average consensus of analysts who follow the company, and revenues were also $12 million less than forecast.
Ben BrockIn response, Astec’s stock fell by $4.33 per share to close at $50.92 per share, its lowest price since May 2016.