Boston, MA 03/11/2014 (wallstreetpr) – Astec Industries, Inc. (NASDAQ:ASTE) functions in the manufacturing and marketing of components and equipment used mainly in road building as well as related construction activities. The company is witnessing nice developments around it and investors should take notice not to miss the opportunity.
Shares of Astec Industries, Inc. (NASDAQ:ASTE) have been seen climbing since the company reported widely strong results on February 25. In the last session, shares were up 6.68 percent to $44.10 at close of regular trading. The Monday trading also saw the shares touching a new 12-month high at $44.46.
What is obvious is that it is not normal that stocks get powered by strong earnings results over several weeks after results are released. But Astec Industries, Inc. (NASDAQ:ASTE) has been up and up ever since its earnings report. So then, what could be the reason for the strong gains seen in the stock?
Well, it is easy to answer that questions once we get to see how the company performed in the most recent quarter and how that shapes the future or is related to the future.
Most recent quarter
Astec Industries, Inc. (NASDAQ:ASTE) witnessed earnings per share improvement of 50 percent to 36 cents in fourth quarter from 24 cents in the fourth quarter of 2012. That number exceeded the expectation of analysts at Zacks who had hoped for earnings per share of 31 cents.
Year-to-date, Astec Industries, Inc. (NASDAQ:ASTE) has posted returns that exceeded S&P 500 performance by 7.3 percent against 2 percent.
Now, once these are understood, it is easy to look at the growth drivers for the stock.
Growth drivers
Astec Industries, Inc. (NASDAQ:ASTE) is poised to net significant gains from sale of wood pellet equipments. The U.K has approved tax credit to encourage plants to make use of wood pellets to power their facilities instead of coal. This means that many plants in the U.K will be purchasing equipments to enable them burn wood pellets for energy. And given that Astec Industries, Inc. (NASDAQ:ASTE) is already thriving in the business of supplying equipments for such uses, a sizeable opportunity has just opened.
