Latest news with #AlamoGroup
Yahoo
05-08-2025
- Business
- Yahoo
Alamo (ALG) Reports Q2: Everything You Need To Know Ahead Of Earnings
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). Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
Yahoo
25-06-2025
- Business
- Yahoo
Are You Looking for a Top Momentum Pick? Why Alamo Group (ALG) is a Great Choice
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us. Below, we take a look at Alamo Group (ALG), which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions. It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Alamo Group currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period. You can see the current list of Zacks #1 Rank Stocks here >>> In order to see if ALG is a promising momentum pick, let's examine some Momentum Style elements to see if this maker of road maintenance, industrial and farm equipment holds up. A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area. For ALG, shares are up 0.96% over the past week while the Zacks Manufacturing - Farm Equipment industry is up 1.4% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 7.57% compares favorably with the industry's 0.35% performance as well. While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Shares of Alamo Group have increased 20.74% over the past quarter, and have gained 26.7% in the last year. On the other hand, the S&P 500 has only moved 6.01% and 13.18%, respectively. Investors should also pay attention to ALG's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. ALG is currently averaging 136,793 shares for the last 20 days. The Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with ALG. Over the past two months, 1 earnings estimate moved higher compared to none lower for the full year. These revisions helped boost ALG's consensus estimate, increasing from $10.42 to $10.85 in the past 60 days. Looking at the next fiscal year, 1 estimate has moved upwards while there have been no downward revisions in the same time period. Given these factors, it shouldn't be surprising that ALG is a #2 (Buy) stock and boasts a Momentum Score of B. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Alamo Group on your short list. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alamo Group, Inc. (ALG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
11-06-2025
- Business
- Yahoo
ALG Q1 Earnings Call: Mixed Segment Trends and Ongoing Cost Initiatives Shape Outlook
Specialized equipment manufacturer for infrastructure and vegetation management Alamo Group (NYSE:ALG) met Wall Street's revenue expectations in Q1 CY2025, but sales fell by 8.1% year on year to $391 million. Its non-GAAP profit of $2.64 per share was 19.6% above analysts' consensus estimates. Is now the time to buy ALG? Find out in our full research report (it's free). Revenue: $391 million vs analyst estimates of $391.1 million (8.1% year-on-year decline, in line) Adjusted EPS: $2.64 vs analyst estimates of $2.21 (19.6% beat) Adjusted EBITDA: $57.29 million vs analyst estimates of $51.23 million (14.7% margin, 11.8% beat) Operating Margin: 11.4%, in line with the same quarter last year Backlog: $702.7 million at quarter end Market Capitalization: $2.53 billion Alamo Group's first quarter results reflected continued divergence between its two main divisions. CEO Jeff Leonard pointed out that the Industrial Equipment division benefited from strong demand by governmental agencies and contractors, driving significant year-on-year growth in sales of vacuum trucks, excavators, and snow removal equipment. Meanwhile, the Vegetation Management division showed sequential improvement, but sales remained below prior-year levels. CFO Agnes Kamps highlighted that cost reduction actions taken in the second half of last year improved margins, particularly in Vegetation Management, where operating margin improved 410 basis points from the previous quarter. Leonard noted, 'We've gained efficiencies in those facilities as a result [of consolidations], and then we made a fairly significant move in the SG&A.' Looking ahead, management expects gradual improvement in both divisions, noting that backlog and order trends support a cautiously optimistic outlook. Leonard commented that the Industrial Equipment division is positioned to benefit from ongoing fleet renewal by municipalities, while Vegetation Management should see further sequential gains as channel inventory normalizes and dealer restocking begins. However, management acknowledged that trade policy and tariffs present ongoing risks, particularly regarding cost inflation and customer demand outside governmental sectors. Leonard emphasized, 'We're watching [tariffs] very closely, and we've been successful so far in pushing back on our suppliers as they've sought larger increases than we felt were warranted.' Management attributed the quarter's segment performance to strong demand in Industrial Equipment and ongoing stabilization efforts in Vegetation Management, supported by cost actions and facility consolidations. Industrial Equipment demand strength: Robust sales of vacuum trucks, excavators, and snow removal equipment drove double-digit organic growth in the Industrial Equipment division, with backlog rising sequentially and operating margin expanding by 120 basis points year over year. Vegetation Management stabilization: Sequential improvement was seen in Vegetation Management orders and backlog, aided by cost reduction initiatives. While year-over-year sales remained lower, operating margin improved 410 basis points from the prior quarter due to completed facility consolidations and SG&A reductions. Cost actions and facility moves: Management completed major cost reduction programs, including consolidating forestry and mower production facilities. Agnes Kamps explained these efforts cut fixed costs and improved efficiency, with further potential gains expected as remaining consolidation work continues. Tariff and trade uncertainty: Management described tariffs as a risk for cost inflation, especially for imported components, but noted that most impacts so far have been modest and largely manageable. Leonard said the company is actively shifting production within North America to mitigate exposure. M&A focus with strong balance sheet: With net debt near zero, management signaled that mergers and acquisitions are now the top capital allocation priority. Leonard stated that several sizable acquisition opportunities are being pursued, with share buybacks considered a secondary option if deals do not materialize. Alamo Group's outlook is shaped by continued momentum in Industrial Equipment, a gradual recovery in Vegetation Management, and external risks from tariffs and global trade. Recovery in Vegetation Management: Management expects further sequential improvements as dealer restocking begins and backlog builds, with the division aiming to restore margins to pre-pandemic highs, leveraging fixed cost reductions from recent facility actions. Industrial Equipment backlog and demand: The sizable backlog and strong ordering activity from municipalities and contractors is anticipated to sustain elevated sales and margins in the coming quarters, particularly as government spending on maintenance remains stable. Tariff and supply chain risks: Management cautioned that tariffs and potential material cost inflation could impact non-governmental demand and margins, especially if broader economic conditions weaken. The company is monitoring supply chain developments and adjusting production as needed. In the quarters ahead, the StockStory team will be monitoring (1) sustained backlog growth and order activity in the Industrial Equipment division, (2) the pace and impact of dealer restocking and margin recovery in Vegetation Management, and (3) any shifts in cost inflation or customer demand stemming from tariffs or macroeconomic factors. Updates on M&A progress and further facility consolidation outcomes will also be important signposts for future performance. Alamo currently trades at a forward P/E ratio of 20.5×. At this valuation, is it a buy or sell post earnings? The answer lies in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Yahoo
26-05-2025
- Business
- Yahoo
Calculating The Intrinsic Value Of Alamo Group Inc. (NYSE:ALG)
The projected fair value for Alamo Group is US$238 based on 2 Stage Free Cash Flow to Equity With US$197 share price, Alamo Group appears to be trading close to its estimated fair value The US$218 analyst price target for ALG is 8.7% less than our estimate of fair value How far off is Alamo Group Inc. (NYSE:ALG) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the expected future cash flows and discounting them to today's value. This will be done using the Discounted Cash Flow (DCF) model. Believe it or not, it's not too difficult to follow, as you'll see from our example! We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model. We've discovered 1 warning sign about Alamo Group. View them for free. We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF ($, Millions) US$118.9m US$135.1m US$140.5m US$145.7m US$150.7m US$155.7m US$160.7m US$165.7m US$170.8m US$175.9m Growth Rate Estimate Source Analyst x1 Analyst x1 Est @ 4.00% Est @ 3.68% Est @ 3.46% Est @ 3.30% Est @ 3.20% Est @ 3.12% Est @ 3.07% Est @ 3.03% Present Value ($, Millions) Discounted @ 7.6% US$110 US$117 US$113 US$109 US$104 US$100 US$96.2 US$92.2 US$88.3 US$84.5 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$1.0b After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.9%. We discount the terminal cash flows to today's value at a cost of equity of 7.6%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = US$176m× (1 + 2.9%) ÷ (7.6%– 2.9%) = US$3.9b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$3.9b÷ ( 1 + 7.6%)10= US$1.9b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$2.9b. The last step is to then divide the equity value by the number of shares outstanding. Compared to the current share price of US$197, the company appears about fair value at a 17% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Alamo Group as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 7.6%, which is based on a levered beta of 1.078. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. View our latest analysis for Alamo Group Strength Debt is not viewed as a risk. Weakness Earnings declined over the past year. Dividend is low compared to the top 25% of dividend payers in the Machinery market. Opportunity Annual earnings are forecast to grow for the next 2 years. Current share price is below our estimate of fair value. Threat Annual earnings are forecast to grow slower than the American market. Whilst important, the DCF calculation shouldn't be the only metric you look at when researching a company. It's not possible to obtain a foolproof valuation with a DCF model. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. For Alamo Group, there are three pertinent items you should further research: Risks: We feel that you should assess the 1 warning sign for Alamo Group we've flagged before making an investment in the company. Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for ALG's future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. Simply Wall St updates its DCF calculation for every American stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Washington Post
08-05-2025
- Business
- Washington Post
Alamo Group: Q1 Earnings Snapshot
SEGUIN, Texas — SEGUIN, Texas — Alamo Group Inc. (ALG) on Thursday reported first-quarter profit of $31.8 million. The Seguin, Texas-based company said it had net income of $2.64 per share. Earnings, adjusted for non-recurring costs, were $2.65 per share. The maker of road maintenance, industrial and farm equipment posted revenue of $391 million in the period.
