Specialized equipment manufacturer for infrastructure and vegetation management Alamo Group (NYSE: ALG) will be reporting results tomorrow afternoon. Here’s what investors should know.
Alamo missed analysts’ revenue expectations by 2.9% last quarter, reporting revenues of $385.3 million, down 7.7% year on year. It was a good quarter for the company, with a decent 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 8.1% year on year to $391.1 million, a reversal from the 3.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.21 per share.
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 four times over the last two years.
Looking at Alamo’s peers in the agricultural machinery segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Lindsay delivered year-on-year revenue growth of 23.5%, beating analysts’ expectations by 4%, and AGCO reported a revenue decline of 30%, topping estimates by 1.8%. Lindsay traded down 8% following the results while AGCO was up 12.2%.
Read our full analysis of Lindsay’s results here and AGCO’s results here.
There has been positive sentiment among investors in the agricultural machinery segment, with share prices up 15.1% on average over the last month. Alamo is up 8.9% during the same time and is heading into earnings with an average analyst price target of $198 (compared to the current share price of $172.54).
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