Specialized equipment manufacturer for infrastructure and vegetation management Alamo Group (NYSE: ALG) will be announcing earnings results this Monday after the bell. Here’s what to look for.
Alamo missed analysts’ revenue expectations last quarter, reporting revenues of $373.7 million, down 3% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income 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 1.7% year on year, a reversal from the 8.1% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to 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 Q1 results, giving us a hint as to what we can expect. Lindsay’s revenues decreased 15.7% year on year, missing analysts’ expectations by 4.2%, and Caterpillar reported revenues up 22.2%, topping estimates by 7.4%. Lindsay traded down 12.1% following the results while Caterpillar was up 9.8%.
Read our full analysis of Lindsay’s results here and Caterpillar’s results here.
There has been positive sentiment among investors in the heavy machinery segment, with share prices up 9.4% on average over the last month. Alamo is up 2.2% during the same time and is heading into earnings with an average analyst price target of $207.40 (compared to the current share price of $171.24).
ONE MORE THING: 3 Hidden Platforms Growing 3X Faster than Amazon, Google, and PayPal. Amazon, Google, and Meta all followed the same playbook: Dominate an ignored market. Build an unbeatable moat. Scale until you’re unstoppable.
These three platforms are running that exact playbook right now. The early investors in Amazon made fortunes. The early investors in these could do the same. Get All 3 Stocks Here for FREE.
