Astec Industries, Inc. ASTE posted earnings of 62 cents per share in second-quarter 2017, down 22% year over year and also short of the Zacks Consensus Estimate of 80 cents.The maker of building, paving and mining equipment, posted total revenue of $302 million, rising 2.6% from the $294 million reported in the year-ago quarter. Revenues also missed the Zacks Consensus Estimate of $315 million.Astec’s domestic sales dipped 2% year over year to $237 million. However, international sales increased 25% year over year to $65 million. Increase in sales in Russia, Europe and Canada were offset by decreases in South America and Africa.Cost of sales was up 7% year over year to $236 million. Gross profit was at $65.5 million, an 11% decline from $73.4 million reported in the year-ago quarter. Gross margin contracted 330 basis points (bps) year over year to 21.7%. Gross margins were impacted by lower-than-expected margins due to the installation of pellet plant equipment as well as lower margins on several new products. New equipment traditionally carries a lower margin through the early part of its life cycle due to the refining and the manufacturing process.Selling, general, administrative and engineering expenses went down 2% year over year to $44.2 million. Income from operations plunged 25% year over year to $21.3 million. Operating margin contracted 250 bps year over year to 7.1%.Astec Industries, Inc. Price, Consensus and EPS Surprise Astec Industries, Inc. Price, Consensus and EPS Surprise | Astec Industries, Inc. QuoteSegment PerformanceRevenues for the Infrastructure Group segment declined 6.1% to $143 million from $152 million in the year-ago quarter. Segment profit plunged 49.7% year over year to $9.9 million.Total revenue for the Aggregate and Mining Group segment increased 8% year over year to $107 million. Profit improved 3.8% year over year to $11.4 million.The Energy Group segment’s total revenue increased 20.7% to $51.7 million from $42.8 million in second-quarter 2016. The segment reported operating profit of $3.2 million, up from $2.6 million in the year-ago quarter.Financial PositionAstec reported cash and cash equivalents of $52 million at the end of second-quarter 2017, down from million as of Jun 30, 2016. Receivables increased to $149 million as of Jun 30, 201, from $127.5 million as of Jun 30, 2016. Inventories went up to $381 million as of Jun 30, 2017, from $379.5 million as of Jun 30, 2016.Astec’s total backlog dipped 5% to $352 million at the end of the second quarter from $371 million at second-quarter 2016 end. Backlog improved in the Aggregate and Mining Group and Energy group a respective 55.2% and 9.5%. However, backlog in the Infrastructure Group declined 20.4%. Domestic backlog declined 13% year over year to $376 million as of Jun 30, 2017 while international backlog improved 39% year over year to $76.2 million at the end of the second quarter.OutlookFor third-quarter 2017, the company expects revenues to be higher on a year-over-year basis, backed by backlog, domestic infrastructure product sales activity, continued oil, gas and water product sales activity as well as momentum in international sales despite a strong U.S. dollar. The company expects gross and net margins to be also higher in the quarter from the prior-year quarter levels.For 2017, the company anticipates revenues to rise approximately 5% year over year, with a flat to slightly improved net income for the year.Share Price PerformanceIn the last one year, Astec has underperformed the industry with respect to price performance. The stock declined 18.1%, while the industry rose 41%.Zacks Rank & Key PicksAstec currently carries a Zacks Rank #5 (Strong Sell).Better-ranked stocks worth considering in the same sector are AGCO Corporation AGCO, Terex Corporation TEX and Apogee Enterprise, Inc. APOG. All the three stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.AGCO has an average positive earnings surprise of 40.39% in the trailing four quarters. Terex generated an outstanding average positive earnings surprise of 122.61% in the past four quarters, while Apogee has an average positive earnings surprise of 3.41% in the last four quarters.More Stock News: Tech Opportunity Worth $386 Billion in 2017From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future. Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Apogee Enterprises, Inc. (APOG): Free Stock Analysis Report Terex Corporation (TEX): Free Stock Analysis Report Astec Industries, Inc. (ASTE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report To read this article on Zacks.com click here.