(TEX) - Consensus estimates for this quarter and next quarter have risen 19.7% and 18.1%, respectively, over the past 90 days

Terex Corporation (TEX), which is a Zacks #1 Rank stock, exceeded analysts' second-quarter earnings expectations by 20.0% when it posted profits of $1.20 per share. Moreover, revenues came in at a record $2.08 billion. TEX's solid quarterly numbers prompted it to increase its full-year earnings per share guidance. The company has a price-to-book ratio of 2.9, compared to 5.1 for the market. TEX's PEG ratio currently sits at 0.73. Full Analysis Terex Corporation is a diversified global manufacturer of capital equipment for the construction, infrastructure, quarry, mining, shipping, transportation, refining and utility industries. When TEX reported second-quarter earnings per share of $1.20, the company beat the Street's estimate by an impressive 20.0%. Furthermore, when compared to the second quarter of 2005, earnings soared 51.9%. Revenues rose 18.2% to a record $2.08 billion versus $1.76 billion in the prior-year period. TEX's solid quarter was fueled by strong sales of aerial work platforms, cranes, materials processing and mining and rebuilding and utility products. Chairman and Chief Executive Officer Ronald M. DeFeo stated, “We are very pleased with this record setting quarter for Terex, but we remain hard at work looking for continued improvement in all of our businesses. While this quarter marks a record level of revenue and net income, it best highlights the potential of our team members and products.” Looking ahead, the company upped its full-year 2006 earnings per share guidance to between $3.55 and $3.75. TEX's previous outlook called for profits between $3.20 and $3.40 per share. Revenues are projected to climb 17% to 22% from its 2005 results to a range between $7.5 billion and $7.8 billion. DeFeo stated, “The increase in profit expectations reflects continued favorable economic conditions and the internal progress we are making on improving costs, market development and price realization.” Earnings per share are expected to grow 16% over the next 3-5 years, compared to the 14% forecasted growth rate of the industry. Consensus estimates for this quarter and next quarter have risen 19.7% and 18.1%, respectively, over the past 90 days. Estimates for the full years of 2006 and 2007 jumped 12.5% and 14.6%, respectively, over the same period of time. TEX is currently trading at a valuation of 15.0x trailing 12-month earnings and at 11.4x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.4x trailing 12-month earnings and at 15.4x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 2.9, compared to 5.1 for the market. TEX's PEG ratio currently sits at 0.73. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home