Ben BrockAstec Industries Inc. today reported lower than expected earnings for the third quarter, although profits were up 25 percent from a year ago.
The Chattanooga-based asphalt equipment maker said today it earned $2.3 million, or 10 cents per share, in the three months ended Sept. 30. A year ago, Astec earned $1.9 million, or 8 cents per share.
The results missed Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of 23 cents per share.
As a result, Astec shares were trading down nearly 7 percent by midday today.
The maker of equipment for building, paving and mining posted revenue of $211.4 million in the period, also falling short of Street forecasts. Five analysts surveyed by Zacks expected $228 million.
"We were pleased to improve our earnings by 25 percent in the third quarter versus the third quarter of last year, especially given the current headwinds we are facing, including low oil prices, the global mining slow down, the strong U.S. Dollar, and the absence of a long-term highway bill in the United States," Astec CEO Ben Brock said in a statement today. "Our year-to-date revenues are up 4 percent and our year-to-date earnings are up 12 percent versus last year. We have accomplished these increases through a variety of efforts, but two that stand out are our new product offerings that have allowed us to secure many of the orders we have shipped this year and our lean manufacturing initiatives which have improved margins and earnings."
Astec Industries shares have dropped 12 percent since the beginning of the year.