Specialized equipment manufacturer for infrastructure and vegetation management Alamo Group (NYSE: ALG) will be reporting results tomorrow afternoon. Here’s what to look for.
Alamo beat analysts’ revenue expectations last quarter, reporting revenues of $450.7 million, up 7.6% year on year. It was a very strong quarter for the company, with a decent beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.
Is Alamo a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Alamo’s revenue to grow 4.1% year on year, in line with the 4.7% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Alamo has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Alamo’s peers in the heavy machinery segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Lindsay delivered year-on-year revenue growth of 5.2%, beating analysts’ expectations by 7.3%, and AGCO reported a revenue decline of 8.6%, falling short of estimates by 2.7%. Lindsay’s stock price was unchanged after the resultswhile AGCO was up 8.6%.
Read our full analysis of Lindsay’s results here and AGCO’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the heavy machinery stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3% on average over the last month. Alamo is down 9.4% during the same time and is heading into earnings with an average analyst price target of $203.50 (compared to the current share price of $147.18).
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