Astec (ASTE) Earnings Beat Estimates in Q4, Revenues Dip Y/Y

Core Viewpoint - Astec Industries, Inc. reported a mixed performance in Q4 2023, with adjusted earnings per share exceeding expectations, but revenues falling short of estimates, indicating challenges in the market despite improved profitability metrics [1][2][6]. Revenue & Backlog - Revenues decreased by 3.6% year over year to $337 million, missing the Zacks Consensus Estimate of $353 million [2] - Domestic sales increased by 1.5% year over year, while international sales declined by 24.7% [2] - The backlog stood at $570 million, reflecting a year-over-year decline of 37.6%, with domestic backlog down 41.8% to $450 million and international backlog up 14.1% to $120 million [2] Operating Performance - Cost of sales fell by 11% year over year to $248 million, leading to a gross profit of $89 million compared to $71 million in the prior year [3] - The gross margin improved to 26.4% from 20.3% in the previous year [3] - SG&A expenses increased by 10.3% year over year to approximately $70 million [3] - Adjusted operating income rose to $26.3 million from $14.7 million in the prior year, with an adjusted operating margin of 7.8% compared to 4.2% [3] - Adjusted EBITDA was $33 million, up from $22 million in the previous year, with an adjusted EBITDA margin of 9.7% compared to 6.3% [3] Segment Performances - Infrastructure Solutions segment revenues increased by 0.7% to $240 million, with adjusted EBITDA rising by 52.8% to $35.3 million [4] - Materials Solutions segment revenues fell by 13.1% to $95 million due to softer demand, with adjusted EBITDA down 8.2% to $8.9 million [4] Financial Position - At the end of 2023, cash and cash equivalents totaled $63 million, down from $66 million at the end of 2022 [5] - Long-term debt decreased to $72 million from $78 million at the end of 2022 [5] 2023 Performance - Adjusted EPS for 2023 was $2.67, up from $1.23 in the prior year, beating the Zacks Consensus Estimate of $2.39 [6] - Sales increased by 5% year over year to $1.34 billion, but missed the Zacks Consensus Estimate of $1.35 billion [6] Price Performance - ASTE shares have declined by 13% over the past year, contrasting with the industry's growth of 36.5% [7]