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Let’s dig into the relative performance of Manitowoc (NYSE:MTW) and its peers as we unravel the now-completed Q4 construction machinery earnings season.
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 slower Q4. As a group, revenues missed analysts’ consensus estimates by 1.4%.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 11.1% 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 $596 million, flat year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with a significant miss of analysts’ EPS and backlog estimates.
“Fourth quarter results were in line with our expectations. I thank the Manitowoc team for their hard work, dedication, and resilience in managing through a difficult environment. Our 2024 results highlight the strength of our aftermarket business which generated a record $629.1 million of revenue. Comparing to 2020, the year before the launch of our CRANES+50 strategy, non-new machine sales have increased by over 67%,” said Aaron H. Ravenscroft, President and Chief Executive Officer of The Manitowoc Company, Inc.
Unsurprisingly, the stock is down 19.2% since reporting and currently trades at $7.92.
Read our full report on Manitowoc here, it’s free.
Best Q4: 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 $359 million, up 6.5% year on year, falling short of analysts’ expectations by 4%. However, the business still had a strong quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Astec achieved the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 19.8% since reporting. It currently trades at $37.39.
Is now the time to buy Astec? Access our full analysis of the earnings results here, it’s free.