Astec Industries Earnings Perspective: Return On Invested Capital

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Astec Industries ASTE brought in sales totaling $267.80 million during Q4 according to data provided by Benzinga Pro. However, earnings decreased 197.85%, resulting in a loss of $9.10 million. In Q3, Astec Industries earned $9.30 million and total sales reached $267.00 million.

What Is Return On Invested Capital?

Return on Invested Capital is a measure of yearly pre-tax profit relative to capital invested by a business. Changes in earnings and sales indicate shifts in a company's ROIC. A higher ROIC is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROIC suggests the opposite. In Q4, Astec Industries posted an ROIC of 1.05%.

Keep in mind, while ROIC is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.

Return on Invested Capital is a measure of yearly pre-tax profit relative to capital invested by a business. Changes in earnings and sales indicate shifts in a company's ROIC. A higher ROIC is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROIC suggests the opposite. In Q4, Astec Industries posted an ROIC of 1.05%.

Keep in mind, while ROIC is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.

For Astec Industries, the positive return on invested capital ratio of 1.05% suggests that management is allocating their capital effectively. Effective capital allocation is a positive indicator that a company will achieve more durable success and favorable long-term returns.

Analyst Predictions

Astec Industries reported Q4 earnings per share at $-0.03/share, which did not meet analyst predictions of $0.02/share.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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Posted In: EarningsBZI-ROCE
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