Astec Industries (ASTE) reported third-quarter EPS of $0.15, which is well below the Zacks Consensus Estimate of $0.32. Except for the Mobile Asphalt Paving group that is benefiting from the stimulus packages, sales were down in all other Astec segments.
Uncertainty surrounding the Highway Bill renewal is currently a major concern for the company. With no progress on the reauthorization of the bill, Astec’s customers are staying away from investing in capital equipment.
Given continued weakness in most of its end-markets and uncertainty surrounding the Highway Bill, we do not expect to see a major improvement in Astec’s numbers until 2011. We are downgrading the stock from Neutral to Underperform.Zacks Investment Research
