NYSE$ALG

Alamo Group Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported record net income for a first quarter and net sales decreased slightly.

Alamo Group's first quarter results showed a slight decrease in net sales but a record net income. The Agricultural Division saw significant growth, while the Industrial Division experienced a decrease in net sales. The company is optimistic about future performance, citing strong bookings and backlog.

  • Record net income for a first quarter of $17.5 million, up 12.5%.
  • Net sales for the first quarter of $311.2 million, down 1.0%.
  • Industrial Division net sales of $211.9 million, down 7.9%.
  • Agricultural Division net sales of $99.3 million, up 17.5%.

Headline financials

Total Revenue

$311M

Previous: $314M-1.0%
EPS (adj)

$1.47

Previous: $1.29+14.0%
Gross Margin

24.6%

Previous: 25.1%-2.0%
Capital Expenditures

-$3.48M

Previous: -$7.38M+52.9%
Free Cash Flow

$14M

Previous: $8.15M+71.6%
Net Income

$17.5M

Previous: $15.5M+12.5%
Operating Income

$25.4M

Previous: $23.9M+6.6%
Gross Profit

$76.4M

Previous: $78.9M-3.2%
Cash & Equivalents

$105M

Previous: $84.4M+24.7%
Total Assets

$1.21B

Previous: $1.25B-3.5%
Stock-Based Comp

$1.24M

Previous: $933K+32.9%

Revenue & EPS history

Alamo Group · Revenue · Quarterly

$311M

Q1 2021-1%vs Q1 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Alamo Group · $212M total across 1 segment · Q1 2021

  • Industrial Equipment
    $212M-7.9%

Forward guidance

Alamo Group anticipates that supply chain challenges will persist into the second quarter of 2021 but expects improvements in the second half of the year. The company remains optimistic about full-year results, driven by the rebounding economy and contributions from recent acquisitions.

Tailwinds

  • Strong and continuing improvements in bookings and backlog.
  • Expect to be back to pre-pandemic levels of operations in the second half of the year, assuming supply chain challenges can be overcome.
  • Full effect of the major acquisitions completed in 2019 - Morbark and Dutch Power.
  • Benefit by a variety of synergies resulting from these acquisitions which have been ongoing in spite of the pandemic challenges.
  • Recent economic stimulus package in the U.S. will certainly provide needed help to cities, counties and states who are the biggest end users of our Industrial Division's infrastructure maintenance equipment.

Headwinds

  • Supply chain challenges are expected to continue to impact results in the second quarter as much or more than in the first quarter.
  • Operational delays due to COVID cases within work forces.
  • Lingering issues related to the COVID pandemic.
  • Disruption with logistics.
  • More inflationary pressure than we have experienced in the last several years.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.8%

Avg return

Earnings day

-0.1%

Avg return

5 days after

+0.8%

Avg return

30 days after

55%

36 / 65 earnings

Positive

+23.2%

Q3 2014

Best reaction

-16.2%

Q3 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.3%-4.4%-13.0%
Q4 2025-15.7%-23.0%-23.0%
Q3 2025+0.8%+0.2%-9.3%
Q1 2025+6.9%+12.3%+16.0%
Q4 2024-5.0%-3.3%-1.9%
Q3 2024+8.3%+7.9%+15.5%
Q2 2024-3.3%-9.4%-2.9%
Q1 2024+0.0%+0.1%-2.0%
Q4 2023-5.1%-5.8%-0.1%
Q3 2023+14.0%+14.5%+18.2%
Q2 2023-7.4%-7.4%-9.3%
Q1 2023+1.1%+1.7%+0.7%
Q4 2022+10.8%+13.3%+9.8%
Q3 2022-4.4%-0.9%+1.4%
Q2 2022+4.0%+5.6%+1.0%
Q1 2022-4.7%-9.8%-5.9%
Q4 2021+2.4%+2.7%+9.5%
Q3 2021-1.9%+1.9%-7.8%
Q2 2021+0.1%+2.0%+6.3%
Q1 2021+1.5%+0.4%-5.5%
Q4 2020-5.3%-4.1%-4.9%
Q3 2020+0.0%+3.9%+14.8%
Q2 2020+4.6%+5.6%+9.7%
Q1 2020+3.6%+2.5%+22.6%
Q4 2019-9.5%-6.6%-25.8%
Q3 2019-16.2%-14.4%-10.2%
Q2 2019+9.9%+7.8%+14.7%
Q1 2019-0.1%+1.9%-8.4%
Q4 2018+2.0%+2.5%+5.2%
Q3 2018+6.0%+1.7%-3.5%
Q2 2018+0.7%+1.7%+2.5%
Q1 2018-12.7%-14.6%-14.6%
Q4 2017-4.0%+0.7%-1.1%
Q3 2017+4.0%+4.9%+11.8%
Q2 2017-2.3%-0.9%-1.4%
Q1 2017+4.2%+6.8%+9.8%
Q4 2016-3.1%-3.7%-2.2%
Q3 2016+0.2%+4.3%+14.3%
Q2 2016-3.4%-1.4%-0.5%
Q1 2016+0.7%
Q4 2015+12.5%
Q3 2015+10.8%
Q2 2015-1.8%
Q1 2015-7.1%
Q4 2014+18.5%
Q3 2014+23.2%
Q2 2014+0.5%
Q1 2014-6.1%
Q4 2013+8.5%
Q3 2013+6.4%
Q2 2013+5.3%
Q1 2013+2.4%
Q4 2012+2.7%
Q3 2012-3.8%
Q2 2012-4.2%
Q1 2011-0.3%
Q1 2012+1.2%
Q4 2009+2.5%
Q4 2011+2.5%
Q3 2010-1.0%
Q3 2011-1.0%
Q2 2011-2.6%
Q2 2010-2.6%
Q4 2010-2.6%
Q1 2010+7.7%

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