Equipment distribution company Alta Equipment Group (NYSE: ALTG) will be reporting results this Monday after market close. Here’s what to look for.
Alta missed analysts’ revenue expectations last quarter, reporting revenues of $475.5 million, down 1.2% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Is Alta 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 Alta’s revenue to grow 7.4% year on year, a reversal from the 5.8% decrease 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. Alta has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Alta’s peers in the specialty equipment distributors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Richardson Electronics delivered year-on-year revenue growth of 18.9%, beating analysts’ expectations by 10.1%, and United Rentals reported revenues up 15.7%, topping estimates by 4.4%. Richardson Electronics’s stock price was unchanged after the resultswhile United Rentals was up 3.9%.
Read our full analysis of Richardson Electronics’s results here and United Rentals’s results here.
Investors in the specialty equipment distributors segment have had fairly steady hands going into earnings, with share prices down 1.7% on average over the last month. Alta is down 6.5% during the same time and is heading into earnings with an average analyst price target of $9.82 (compared to the current share price of $5.93).
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