In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from TEX and the news from its closest competitors.
Recent EPS Actuals vs. Estimates
The company has met or beaten analysts' estimates in the last three quarters. In the last quarter it reported $0.29 EPS, beating analyst estimates of $0.22.
The consensus EPS estimate is $0.50 based on 16 analysts' estimates, up from $0.10 a year ago. Revenue estimates are $2.02B, up from $1.49B a year ago. The median target price by analysts for the stock is $28.00.
Average recommendation: Overweight
Analyst Upgrades and Downgrades
- On June 24, 2012, Longbow downgraded the company from Buy to Neutral.
- On February 21, 2012, RBC Capital Mkts reiterated Outperform rating for the company.
- On February 17, 2012, UBS reiterated Neutral rating for the company.
- On February 17, 2012, Barclays Capital reiterated Equal Weight rating for the company.
- On February 9, 2012, BB&T Capital Mkts initiated Buy rating for the company.
- On February 8, 2012, Longbow upgraded the company from Neutral to Buy.
- On January 24, 2012, KeyBanc Capital Mkts upgraded the company from Hold to Buy.
- On May 4, 2012, Terex Corp. And Russian Machines announced that they have completed the formation of a joint venture company for the manufacture of construction and roadbuilding equipment in Russia.
- On April 27, 2012, Terex Corp. announced that for fiscal 2012, it expects approximately $475-$525 million in operating profit and earnings per share (EPS) of $1.65-$1.85 per share (based on an average share count of approximately 116 million shares and excluding the impact of restructuring and unusual items) on sales of $7.5-$8.0 billion.
- On April 3, 2012, PrimeTass reported that GAZ OAO (GAZ Group) is establishing a joint venture to produce road construction equipment with US equipment manufacturer Terex Corp.
- On March 27, 2012, Terex Corp. announced that it has completed its previously announced financing, with total net proceeds to Terex of approximately $295 million. Details of the public offering are: $300 million aggregate principal amount of 6.50% Senior Unsecured Notes due 2020 at an issue price of 100%.
- On March 22, 2012, Terex Corp. announced that it is seeking approximately $300 million in new financing. The Company intends to offer, subject to market and other conditions, $300 million in senior unsecured notes.
- On March 21, 2012, Terex Corp. announced that it has partnered with China SINOMACH Heavy Industry Corporation (Sinomach) as its new strategic partner for Sichuan Changjiang Engineering Crane Co., Ltd (SCE).
- On February 16, 2012, Terex Corp. announced that for fiscal 2012, it expects sales to increase of 15% to 23%, or be $7.5-$8 million, operating profit (EBIT) is expected to be in the range of $475-$525 million and EPS to be in the range of $1.65-$1.85 per share.
- On January 30, 2012, Demag Cranes AG (Demag) as controlled Company and Terex Germany GmbH & Co. KG (Terex), an indirect wholly-owned subsidiary of Terex Corporation, Westport, USA, as controlling company entered into a domination and profit and loss transfer agreement.
Caterpillar (CAT), CNH Global (CNH), Deere & Company (DE), and The Manitowoc Company (MTW) are considered major competitors for Terex Corporation and the table below provides the key metrics for these companies and the industry.
The chart below compares the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.
TEX data by YCharts
Competitors' Latest Development
- On June 5, 2012, Westport Innovations Inc. announced that it has signed agreements with Caterpillar Inc. to co-develop natural gas technology for off-road equipment, including mining trucks and locomotives.
- On May 30, 2012, Caterpillar Inc. and Barloworld Limited announced that Caterpillar Global Mining LLC and Barloworld have signed an agreement for Barloworld to acquire the Bucyrus equipment distribution and support business in South Africa and Botswana.
- On May 30, 2012, CNH Global NV announced that its Board of Directors has received a proposal from Fiat Industrial S.p.A. regarding a combination transaction between Fiat Industrial S.p.A. and CNH. The proposal was set forth in a letter sent by Sergio Marchionne, Chairman of Fiat Industrial S.p.A., to the Board of Directors of CNH. Fiat Industrial S.p.A. currently owns approximately 88% of CNH's shares.
- On May 10, 2012, Reuters reported that Caterpillar Inc. said on May 10, 2012 it will sell a 65% stake in its third-party logistics division to Platinum Equity for $750 million, to focus on its core businesses.
- On May 3, 2012, Manitowoc Co. reaffirmed its fiscal 2011 guidance. According to I/B/E/S Estimates, analysts are expecting the Company to report EPS of $0.85 on revenues of $4.092 billion for fiscal 2012.
- On April 25, 2012, Caterpillar Inc. announced that it has increased the profit guidance for fiscal 2012 while maintaining the sales and revenues outlook in the range of $68 to $72 billion.
- On April 12, 2012, Caterpillar Inc. announced to maintain the quarterly cash dividend of $0.46 per share of common stock, payable May 19, 2012, to stockholders of record at the close of business, April 23, 2012.
- On April 12, 2012, Caterpillar Inc. announced it has reached an agreement with WesTrac Pty Limited, a wholly owned subsidiary of Seven Group Holdings Limited, to acquire from Caterpillar the distribution and support business formerly operated by Bucyrus in Western Australia, Australian Capital Territory and New South Wales.
- On April 11, 2012, Caterpillar Inc. announced that the Board of Directors voted to maintain the quarterly cash dividend of $0.46 per share of common stock, payable May 19, 2012, to stockholders of record at the close of business, April 23, 2012.
- On March 6, 2012, Caterpillar Inc. announced that by fiscal 2012, it would have sales of $55 billion to $60 billion and profit of $8 to $10 a share. For fiscal 2012, the Company previously issued guidance of sales going up from $60 billion to a range of $68 billion to $72 billion, with kind of a midpoint of around $70 billion.
- On March 1, 2012, Caterpillar Inc. announced that Caterpillar Japan Ltd. (Caterpillar Japan) has acquired Caterpillar Tohoku Ltd. (Cat Tohoku), effective March 1. With the acquisition, Caterpillar Japan is restructuring its distribution network in Japan.
- On February 15, 2012, Deere & Company announced that for fiscal 2012, net income attributable to the Company is anticipated to be approximately $3.275 billion. According to I/B/E/S Estimates, analysts on an average were expecting the Company to report net income of $3.172 billion for fiscal 2012.
- On February 3, 2012, Reuters reported that Caterpillar Inc. has decided to close its Electro-Motive locomotive plant in London, Ontario, and lay off at least 450 workers following several months of unsuccessful contract negotiations with the Canadian Auto Workers union.
- On January 26, 2012, Caterpillar Inc. announced that for fiscal 2012 sales and revenues has increased and is expected to be in a range of $68-$72 billion. Profit per share is expected to be about $9.25 at the middle of the sales and revenues range.
The stock has a market capitalization of $1.77B and is currently trading at $15.30 with a 52 week range of $9.30 - $26.77. The stock's year-to-date performance has been 18.58%. It is currently trading below 20, 50 and 200 SMA.
Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.