Earnings Preview: Terex Corporation

Terex Corporation (TEX) is expected to report Q2 earnings after market close Wednesday, July 23, with a conference call scheduled for Thursday, July 24 at 8:30 a.m. ET.

Guidance

Analysts are looking for EPS of $2.00 on revenue of $2.76B. The consensus range is $1.89 to $2.09 for EPS, and $2.67B to $2.87B for revenue, according to First Call. At the JP Morgan Basics & Industrials conference on June 4, Terex reaffirmed its FY08 EPS guidance of $6.85 to $7.15 vs. consensus of $7.13, the company also reaffirmed its FY08 revenue guidance of $10.5B to $10.9B vs. consensus of $10.62B. The company also stated it set its stretch goal of $12B in sales by 2010, and its "medium term" stretch goal is to be a "12 by 12" company by 2010.

Analyst Views

On July 10, Wachovia lowered second half 2008 and 2009 estimates for the company citing the weaker outlook and higher input costs. The firm believes Q2 out performance for Terex could cause relief rallies but said risk of global recession offsets the groups compressed valuations.

Gabelli stated on July 15, it believes LEAN manufacturing has greatly improved productivity at the company's crane site. The firm thinks that strength in the cranes and MPM segment will more than offset expected weakness in the AWP segment, and they reiterated their Buy rating.