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Alamo (ALG) To Report Earnings Tomorrow: Here Is What To Expect

ALG Cover Image

Specialized equipment manufacturer for infrastructure and vegetation management Alamo Group (NYSE: ALG) will be announcing earnings results tomorrow after the bell. Here’s what to expect.

Alamo missed analysts’ revenue expectations by 0.7% last quarter, reporting revenues of $401.3 million, down 4.4% year on year. It was a softer quarter for the company, with a miss 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 5% year on year to $396.9 million, a reversal from the 8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.28 per share.

Alamo Total Revenue

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 three 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. AGCO’s revenues decreased 24% year on year, missing analysts’ expectations by 8.5%, and Deere reported a revenue decline of 35.1%, falling short of estimates by 25.6%. AGCO traded down 3.3% following the results while Deere’s stock price was unchanged.

Read our full analysis of AGCO’s results here and Deere’s results here.

Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good 2024. An economic soft landing (so far), the start of the Fed's rate cutting campaign, and the election of Donald Trump were positives for the market, and while some of the heavy machinery stocks have shown solid performance, the group has generally underperformed, with share prices down 5.7% on average over the last month. Alamo is down 2% during the same time and is heading into earnings with an average analyst price target of $220.25 (compared to the current share price of $186.60).

When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.

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