NYSE$ALG

Alamo Group Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Alamo Group reported first quarter results, with record net sales and strong performance in the Industrial Equipment division offsetting headwinds in Vegetation Management.

Alamo Group Inc. reported a 3.4% increase in net sales to $425.6 million for the first quarter of 2024. The Industrial Equipment division saw a significant increase in sales, while the Vegetation Management division faced market headwinds. Net income was $32.1 million, or $2.67 per diluted share.

  • Record net sales of $425.6 million, a 3.4% increase year-over-year.
  • Industrial Equipment net sales increased by 29.9% to $201.8 million.
  • Vegetation Management net sales decreased by 12.7% to $223.7 million.
  • Net income was $32.1 million, with EPS of $2.67 per share.

Headline financials

Total Revenue

$426M

Previous: $412M+3.4%
EPS

$2.67

Previous: $2.79-4.3%
Operating Margin

11.0%

No prior period
Gross Margin

26.2%

Previous: 27.3%-4.0%
Net Debt

$200M

No prior period
Capital Expenditures

-$6.65M

Previous: -$9M+26.1%
Free Cash Flow

$25.5M

Previous: $24.4M+4.6%
Net Income

$32.1M

Previous: $33.3M-3.7%
Operating Income

$47M

Previous: $49M-4.2%
Gross Profit

$112M

Previous: $113M-0.8%
Cash & Equivalents

$122M

Previous: $109M+11.4%
Total Assets

$1.52B

Previous: $1.43B+6.3%
Stock-Based Comp

$2.13M

Previous: $1.7M+25.1%

Revenue & EPS history

Alamo Group · Revenue · Quarterly

$426M

Q1 2024+3.4%vs Q1 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Alamo Group · $219M total across 1 segment · Q3 2021

  • Industrial Equipment
    $219M+11.6%

Forward guidance

The outlook for the balance of 2024 is somewhat more cautious than it was when the company reported results for the fourth quarter of 2023, given the uncertain interest rate environment.

Tailwinds

  • Industrial Equipment Division has strong momentum and record backlog.
  • Governmental markets continue to display significant strength.
  • Ongoing investment in renewal of governmental maintenance equipment fleets resulted in brisk quoting and increased ordering activity.
  • Governmental markets for Vegetation Management Division were strong, especially in North America.
  • Prices for purchased components stabilized and purchased material cost variances moderated.

Headwinds

  • Non-governmental markets for Vegetation Management Division remained under pressure.
  • Elevated interest rates continued to negatively impact dealer retail sales and kept channel inventory stubbornly high in North American Forestry/Tree Care and Hobby Farm/Ranch groups.
  • Supply chain challenges persisted in a few areas such as truck chassis frames, transmissions, other truck components and certain types of hydraulic equipment.
  • Uncertain interest rate environment may prolong headwinds in Vegetation Management.
  • Anticipated correction in channel inventory may be delayed.

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 2024

Historical avgQ1 2024

+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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