VMC - Terex's disappointing forecast triggers selloff for Caterpillar peers

2023-10-18 20:48:11 ET

Terex’s ( NYSE: TEX ) stock on Wednesday fell 9.5% to a five-month low, a day after providing a disappointing earnings estimate.

The maker of lifting and material-handling machinery and vehicles on Tuesday raised its forecast for full-year 2023 EPS to approximately $7.05 from $7.00 previously. Wall Street analysts currently expect $7.16.

The underwhelming outlook pressured the shares of peer companies such as Caterpillar ( NYSE: CAT ), which dropped 4.9% for the biggest decline since April 4.

Vulcan Materials ( NYSE: VMC ) fell 5%, Martin Marietta Materials ( NYSE: MLM ) lost 5.2% and United Rentals ( NYSE: URI ) slid 5.2% as construction-related companies faced selling pressure.

Terex ( TEX ) also said John Garrison will retire as chairman, chief executive and member of the board of directors effective January 1. He will be succeeded Simon Meester, the current president of Terex Aerial Work Platforms.

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