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ASTE Nasdaq· Astec Industries Inc
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ASTE Nasdaq· Astec Industries Inc
Earnings report Q3 2023

ASTE Reports Decrease in Revenue for the Latest Quarter

Segments of revenue

ASTE reported net sales of $303.1 million for the latest quarter, compared to $315.2 million in the same quarter last year. This represents a decrease of 3.8% year-over-year.

Strengths

Despite the decrease in revenue, ASTE was able to maintain a gross profit of $69.6 million, with a gross profit margin of 22.9%. This indicates that the company was able to effectively manage its cost of sales. Additionally, ASTE's management commented that the decrease in revenue was primarily due to lower sales volumes in certain product lines, which they expect to improve in the future.

Challenges

ASTE faced challenges in the latest quarter as their revenue declined compared to the same quarter last year. The company's selling, general, and administrative expenses increased to $74.3 million, up from $63.5 million in the previous year's quarter. This increase in expenses may have contributed to the decrease in profitability.

Noteworthy

It is worth noting that ASTE reported a net loss of $6.5 million for the latest quarter, compared to a net income of $0.5 million in the same quarter last year. This decrease in profitability can be attributed to the decrease in revenue and the increase in selling, general, and administrative expenses.

Summary

ASTE reported a decrease in revenue for the latest quarter, primarily driven by lower sales volumes in certain product lines. However, the company was able to maintain a gross profit and effectively manage its cost of sales. ASTE faced challenges with increased selling, general, and administrative expenses, which contributed to a net loss for the quarter. Despite these challenges, management remains optimistic about improving sales volumes in the future.

Source documents

Form 10-Q  filed on Nov 02, 2023
93 pages scanned

Reference data

Company financials Q3 revenue 303M
Analyst estimates Q3 EPS missed by -101.61%
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