NEW YORK (TheStreet) -- Shares of Terex Corp (TEX) - Get Report are slipping, sharply down by 6.68% to $26.25 on heavy volume in midday trading Thursday, after the company's presentation highlighted some negative aspects of its business at KeyBanc's Industrial, Automotive and Transportation Conference last night.
Terex highlighted a "challenging environment" and noted "difficult end market demand," especially in its cranes and materials processing segments.
It noted that crane product strength in the Middle East market was offset by weakness in the Americas, Australia and Europe.
For its materials processing segment, the company said low commodity prices continue to be a market headwind. It also sees continued softness in Australia and Russia.
Still, the company reaffirmed its 2015 earnings outlook of between $2 to $2.30 per share for the full year.
In the first quarter of 2015, Terex repurchased $48 million shares.
About 2.86 million shares of Terex have exchanged hands as of 12:22 p.m. ET today, compared to its average trading volume of about 2.12 million shares a day.
Westport, Conn.-based Terex is a lifting and material handling solutions company, focused on providing its operations and delivering solutions for a range of commercial applications, including construction, infrastructure, quarrying, mining, manufacturing, transportation, energy and utility industries.
Separately, TheStreet Ratings team rates TEREX CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate TEREX CORP (TEX) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 10.5%. Since the same quarter one year prior, revenues slightly dropped by 9.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Even though the current debt-to-equity ratio is 1.07, it is still below the industry average, suggesting that this level of debt is acceptable within the Machinery industry. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.88 is weak.
- Net operating cash flow has significantly decreased to -$110.70 million or 539.28% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Machinery industry. The net income has significantly decreased by 97.1% when compared to the same quarter one year ago, falling from $35.00 million to $1.00 million.
- You can view the full analysis from the report here: TEX Ratings Report