Specialized equipment manufacturer for infrastructure and vegetation management Alamo Group (NYSE: ALG) will be reporting results this Monday afternoon. Here’s what investors should know.
Alamo beat analysts’ revenue expectations last quarter, reporting revenues of $420 million, up 4.7% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EBITDA estimates and a significant miss 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 5.2% year on year, a reversal from the 7.7% 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 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 Q4 results, giving us a hint as to what we can expect. Deere delivered year-on-year revenue growth of 13%, beating analysts’ expectations by 5.9%, and AGCO reported revenues up 1.1%, topping estimates by 9.6%. Deere traded up 11.7% following the results while AGCO was also up 8.9%.
Read our full analysis of Deere’s results here and AGCO’s results here.
There has been positive sentiment among investors in the heavy machinery segment, with share prices up 5.4% on average over the last month. Alamo is up 9.3% during the same time and is heading into earnings with an average analyst price target of $219.75 (compared to the current share price of $213.54).
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