A lawsuit was filed on behalf of investors in Astec Industries, Inc. (NASDAQ: ASTE) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 02/13/2019 -- An investor, who purchased shares of Astec Industries, Inc. (NASDAQ: ASTE), filed a lawsuit over alleged Securities Laws violations by Astec Industries, Inc. in connection with certain allegedly false and misleading statements.
Investors who purchased shares of Astec Industries, Inc. (NASDAQ: ASTE) have certain options and for certain investors are short and strict deadlines running. Deadline: April 2, 2019. NASDAQ: ASTE investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
Chattanooga, TN based Astec Industries, Inc. designs, engineers, manufactures, and markets equipment and components for the road building, aggregate processing, geothermal, water, oil and gas, and wood processing industries in the United States and internationally. On July 24, 2018, Astec Industries, Inc announced its financial results for the second quarter of 2018 and disclosed that Astec Industries, Inc was exiting from its contractual obligations concerning the Highland wood pellet plant in Arkansas "driven by unresolved issues, which inhibited the plant's ability to meet contractual provisions by the date required by the Company's sales contract with Highland." Therefore, Astec Industries, Inc "agreed to pay $68 million in cash in the aggregate over the course of the next 120 days and forgive approximately $7 million in receivables."
Then, before the market opened on October 23, 2018, Astec Industries, Inc reported third quarter 2018 results that fell well short of the low end of the Company's guidance and the market's expectations. Astec Industries, Inc reported a 1.2% decrease in domestic sales and a 20.2% decrease in backlog, with domestic backlog contracting by 28.1%, which was being dragged down by the Company's pellet business. For 2018, Astec Industries, Inc cut its core revenue growth forecast to 1% to 3%, down substantially from 7% to 12%. The Company also reported earnings per share of $0.30 for the quarter, widely missing the consensus estimate of $0.59. Revenue came in light as well, with Astec Industries, Inc reporting $256.6 million, below analysts' expectations of $276.8 million.
The plaintiff claims that between July 26, 2016 and October 22, 2018, the defendants made false and misleading statements and/or failed to disclose adverse information regarding Astec's business, operations and prospects, including that its wood pellet plants suffered from significant and costly problems that prevented them from running at their promised production capacity, posing a threat to the Company's pellet plant business, its overall financial performance, and its financial outlook. As a result of this information being withheld from the market, the price of Astec stock was artificially inflated to a high of nearly $70 per share between July 26, 2016 and October 22, 2018.
Those who purchased shares of Astec Industries, Inc. (NASDAQ: ASTE) have certain options and should contact the Shareholders Foundation.
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