Specialized equipment manufacturer for infrastructure and vegetation management Alamo Group (NYSE:ALG) will be reporting results tomorrow after the bell. Here’s what investors should know.
Alamo missed analysts’ revenue expectations by 2.9% last quarter, reporting revenues of $416.3 million, down 5.5% year on year. It was a slower quarter for the company, with a miss of analysts’ earnings 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 3.7% year on year to $404.3 million, a reversal from the 13.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.46 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 three 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’s revenues decreased 7.3% year on year, beating analysts’ expectations by 6.5%, and Allison Transmission reported revenues up 12%, topping estimates by 4.3%. Lindsay traded up 6.5% following the results.
Read our full analysis of Lindsay’s results here and Allison Transmission’s results here.
Investors in the heavy machinery segment have had steady hands going into earnings, with share prices flat over the last month. Alamo is down 1.7% during the same time and is heading into earnings with an average analyst price target of $213.25 (compared to the current share price of $173.46).
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