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What:Industrial lift and material handling equipment makerTerex Corporation saw its stock jump as much as 11% this morning before settling in with a sustained 7.5% gain for much of the trading day on Feb. 18.
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So what:Terex reported financial results for the fourth quarter after market close on Feb. 17, with earnings surpassing analyst expectations, though revenue came in short of both analyst expectations, and actually declined from the year-ago period.
Now what:Beyond a relatively good earnings report, it's hard to say exactly what is driving the strong bounce-back for the stock. In addition to better-than-expected profits, the company announced it would increase the dividend, and initiate another $200 million share buyback program after completing the prior one last quarter.
After today's recovery, the stock is about even for 2015 after being down almost 20% at one point. However, shares remain down nearly 40% over the past year. While there has been some improvement, the company continues to operate in a weak environment. Until demand for its industrial and construction-targeted equipment rebounds, that will likely remain the case. Profit growth is likely to come from operational improvements and cost-control in the interim.
The article Why Terex Corporation (TEX) Stock Jumped 11% Today originally appeared on Fool.com.
Jason Hall has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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