Alamo Group Inc. reports results for the quarter ended September 30 - Earnings Summary

What happened

Alamo Group Inc. reported quarterly adjusted earnings of $2.06 per share for the quarter ended September 30, below last year's $2.10 and the $2.62 analysts expected. Revenue fell 4% to $403.14 million, missing the $437.17 million estimate. Reported earnings per share were 17 cents.

Confirmed

Global impact / market context

Lower earnings and a revenue miss mean the company kept less profit per sale and booked fewer sales than Wall Street expected. That can pressure the share price because investors pay for future profit, and the stock has already fallen 12.0% so far this year.

Analyst inference

Analysts still rate the shares a buy, with a median 12-month price target of $205.00, about 25.5% above the last close of $152.73. The average earnings estimate had fallen about 4.3% over three months, showing expectations were already being trimmed.

Analyst inference

What to watch

1. Earnings per share came in at $2.06, below the $2.62 mean estimate from five analysts, whose expected range was $2.50 to $2.80 per share. Confirmed
2. Revenue was $403.14 million, down 4% from a year ago and below the $437.17 million analysts expected, which points to weaker sales. Confirmed
3. Watch whether future estimates keep falling; in the last 30 days there were no negative revisions, so any cuts would signal analysts see lasting pressure on profit. Analyst inference

Evidence

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