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As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the construction machinery industry, including Manitowoc (NYSE:MTW) and its peers.
Automation that increases efficiencies and connected equipment that collects analyzable data have been trending, creating new sales opportunities for construction machinery companies. On the other hand, construction machinery companies are at the whim of economic cycles. Interest rates, for example, can greatly impact the commercial and residential construction that drives demand for these companies’ offerings.
The 4 construction machinery stocks we track reported a strong Q1. As a group, revenues missed analysts’ consensus estimates by 0.8%.
Luckily, construction machinery stocks have performed well with share prices up 25.2% on average since the latest earnings results.
Manitowoc (NYSE:MTW)
Contracted by the United States Navy during WWII, Manitowoc (NYSE:MTW) provides cranes and lifting equipment.
Manitowoc reported revenues of $470.9 million, down 4.9% year on year. This print fell short of analysts’ expectations by 2.3%, but it was still a strong quarter for the company with an impressive beat of analysts’ backlog and EBITDA estimates.
“First-quarter results exceeded our expectations. We began to see signs of a turnaround in our Europe tower crane business with machine orders up 68% year-over-year, marking the third consecutive quarter of year-over-year growth. Our non-new machine sales for the first quarter grew 11% year-over-year to $161 million. Although the tariff situation remains fluid, our team continues to find different ways to mitigate the impact and, therefore, we are maintaining our guidance,” said Aaron Ravenscroft, President and Chief Executive Officer of The Manitowoc Company, Inc.
Interestingly, the stock is up 37.2% since reporting and currently trades at $11.39.
Is now the time to buy Manitowoc? Access our full analysis of the earnings results here, it’s free.
Best Q1: Astec (NASDAQ:ASTE)
Inventing the first ever double-barrel hot-mix asphalt plant, Astec (NASDAQ:ASTE) provides machines and equipment for building roads, processing raw materials, and producing concrete.
Astec reported revenues of $329.4 million, up 6.5% year on year, outperforming analysts’ expectations by 2.8%. The business had a stunning quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Astec scored the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 20.3% since reporting. It currently trades at $42.44.