Earnings Preview: Terex Corporation

Feb.10.09 | About: Terex Corporation (TEX)

Terex Corporation (NYSE:TEX) is expected to report Q4 earnings after market close Wednesday, February 11 with a conference call scheduled for Thursday, February 12 at 8:30 am ET.


Analysts are looking for EPS of 61c on revenue of $2.28B. The consensus range is 43c-83c for EPS, and $2.05B-$2.48B for revenue, according to First Call. Terex announced Q4 and FY08 EPS guidance when it reported its Q3 results. The company expected Q4 EPS of $1.20-$1.33 and FY08 EPS of $6.35-$6.65. However on February 3 Terex announced that it expects its earnings for FY08 to be approximately 5% below the low end of its previous guidance of between $5.69 and $5.79 per fully diluted share vs. consensus $5.64. This revised guidance excludes charges associated with the reduction of our production levels, asset impairments and certain other items. Comparable earnings for FY07 were $5.85 per fully diluted share.

The company also expects to record a non-cash impairment charge of certain of its goodwill, identifiable intangibles and other non current assets principally related to its Construction, Roadbuilding and Utilities businesses. This impairment charge is estimated to be approximately $600M, only a portion of which will be tax affected.

Analyst Views

Barclays initiated the Machinery Sector with a Neutral rating on February 6, citing the current economic environment and risk to Street estimates. The firm initiated Terex with an Equal Weight rating.