Terex’s disappointing forecast triggers selloff for Caterpillar, peers (NYSE:TEX)

Terex’s (NYSE:TEX) stock on Wednesday fell 9.5% to a five-month low, a day after providing a disappointing earnings estimate. Other construction-related companies also faced selling pressure.

Terex (TEX), a maker of lifting and material-handling machinery and vehicles, on Tuesday raised its forecast for full-year 2023 earnings to approximately $7.05 a share from $7.00 a share previously. Wall Street analysts had expected $7.16.

The underwhelming outlook drove declines in 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%.

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.