Specialized equipment manufacturer for infrastructure and vegetation management Alamo Group (NYSE: ALG) will be announcing earnings results this Wednesday after the bell. Here’s what investors should know.
Alamo met analysts’ revenue expectations last quarter, reporting revenues of $391 million, down 8.1% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ EPS estimates.
Is Alamo a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Alamo’s revenue to decline 1.6% year on year to $409.5 million, improving from the 5.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.71 per share.
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 five times over the last two years.
Looking at Alamo’s peers in the heavy machinery segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Lindsay delivered year-on-year revenue growth of 21.7%, beating analysts’ expectations by 4.6%, and AGCO reported a revenue decline of 18.8%, topping estimates by 5.9%. Lindsay traded up 3.9% following the results while AGCO was also up 6.5%.
Read our full analysis of Lindsay’s results here and AGCO’s results here.
Investors in the heavy machinery segment have had steady hands going into earnings, with share prices up 1.4% on average over the last month. Alamo’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $236.75 (compared to the current share price of $226.63).
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