NYSE$ALG

Alamo Group Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Alamo Group's Q2 2020 results were announced, revealing a decrease in net sales and net income compared to the same quarter last year, but the results were in line with expectations given the challenging environment.

Alamo Group reported a decrease in net sales by 5.8% to $268.6 million and a decrease in net income by 37.2% to $13.0 million for the second quarter of 2020, impacted by the COVID-19 pandemic.

  • Net sales for the second quarter were $268.6 million, a decrease of 5.8%.
  • Industrial Division net sales were $182.3 million, a decrease of 6.2%.
  • Agricultural Division net sales were $86.4 million, a decrease of 5.0%.
  • Net income for the second quarter was $13.0 million, a decrease of 37.2%.

Headline financials

Total Revenue

$269M

Previous: $285M-5.8%
EPS (adj)

$1.06

Previous: $1.75-39.4%
Total Backlog

$217M

Previous: $217M+0.0%
Capital Expenditures

-$12.5M

Previous: -$12.4M-1.0%
Free Cash Flow

$444K

Previous: $8.24M-94.6%
Net Income

$13M

Previous: $20.7M-37.2%
Operating Income

$22.7M

Previous: $29.3M-22.8%
Gross Profit

$67.8M

Previous: $73.1M-7.3%
Cash & Equivalents

$82M

Previous: $48.2M+70.2%
Total Assets

$1.19B

Previous: $867M+37.3%
Stock-Based Comp

$1.1M

Previous: $948K+16.4%

Revenue & EPS history

Alamo Group · Revenue · Quarterly

$269M

Q2 2020-5.8%vs Q2 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Alamo Group · $182M total across 1 segment · Q2 2020

  • Industrial Equipment
    $182M-6.2%

Forward guidance

The company anticipates that the challenging business climate will impact their business for the balance of 2020 and into next year, with budget constraints and lower incomes impacting new order placements.

Tailwinds

  • Both Industrial and Agricultural customers are using the company's equipment on a regular basis.
  • The Agricultural Division products are holding up at a little better pace.
  • The company's cash flow should remain strong.
  • The company paid down over $50 million in debt during the quarter.
  • The company is continuing to benefit from its backlog, which is still at a healthy level.

Headwinds

  • The challenging business climate will impact the business for the balance of 2020 and into next year as well.
  • Budget constraints and lower incomes are impacting new order placements.
  • Bookings are still active and coming in at a consistent pace, but at levels that are below the typical pace.
  • The Industrial Division equipment is seeing more challenging conditions as reduced levels of tax revenue has had a heavier impact on governmental operating budgets.
  • New bookings are the key to the company's ongoing results and while they are continuing at a steady pace, the company would like to see them at a higher level than they are currently experiencing.

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 Q2 2020

Historical avgQ2 2020

+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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