Story updated at 9:55 a.m. to reflect market activity.
Shares of Terex fell 1.1% to $34.66 in morning trading.
The analyst firm also reduced its EPS estimates for the farm and construction machinery company through 2016. Credit Suisse expects Terex to reports earnings of $2.40 a share for 2014, down from its previous estimate of $2.55 a share for the year. The firm expects earnings of $3.35 a share for 2015, down from $3.60 a share, and $4.00 a share for 2016, down from $4.80 a share.
"Outside of AWP, which remains very strong, most of the other businesses are taking longer to recover, although are not worsening," analyst J. Cook wrote. "As a result, we believe TEX will place even greater focus on cost opportunities within their control to drive EPS growth and cash flow improvement."
Separately, TheStreet Ratings team rates TEREX CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate TEREX CORP (TEX) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 3.4%. Since the same quarter one year prior, revenues rose by 10.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 347.05% and other important driving factors, this stock has surged by 29.41% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, TEX should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- TEREX CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, TEREX CORP increased its bottom line by earning $1.79 versus $0.92 in the prior year. This year, the market expects an improvement in earnings ($2.57 versus $1.79).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Machinery industry. The net income increased by 556.3% when compared to the same quarter one year prior, rising from $21.30 million to $139.80 million.
- You can view the full analysis from the report here: TEX Ratings Report
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.