Astec Industries' (ASTE) shares rose by 5% in recent trading after Q1 results exceeded market expectations and the company announced a deal to acquire TerraSource Holdings.
The equipment manufacturer reported Q1 adjusted earnings of $0.88 per diluted share, up from $0.34 a year earlier. Analysts polled by FactSet expected $0.46.
Revenue for the quarter ended March 31 was $329.4 million, up from $309.2 million a year earlier. Analysts surveyed by FactSet expected $320.4 million.
Astec said it agreed to acquire TerraSource for $245 million in cash. TerraSource manufactures and distributes similar equipment and has annual revenue of more than $150 million, Astec said
CFO Brian Harris said the acquisition is expected to be accretive "from day one" and he reiterated full-year guidance for adjusted earnings before interest, taxes, depreciation, and amortization in the range of $105 million to $125 million.
Price: 36.78, Change: +1.51, Percent Change: +4.27
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