NYSE$ALG

Alamo Group Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Alamo Group's financial performance decreased due to global softness in Vegetation Management, while Industrial Equipment Division showed strong growth.

Alamo Group reported a decrease in net sales and net income for the second quarter of 2024 compared to the previous year. The decrease was primarily driven by softness in the Vegetation Management segment, while the Industrial Equipment segment performed strongly. Cost reduction actions are expected to yield savings in the remainder of 2024.

  • Net sales decreased by 5.5% to $416.3 million compared to the prior year.
  • Industrial Equipment net sales increased by 14.2% to $204.8 million.
  • Vegetation Management net sales decreased by 19.1% to $211.5 million.
  • Net income decreased to $28.3 million, with EPS of $2.35 per share.

Headline financials

Total Revenue

$416M

Previous: $441M-5.5%
EPS (adj)

$2.35

Previous: $3.03-22.4%
Capital Expenditures

-$11.1M

Previous: -$18.2M+39.4%
Free Cash Flow

$17.3M

Previous: $18.1M-4.8%
Net Income

$28.3M

Previous: $36.4M-22.1%
Operating Income

$43.3M

Previous: $54.4M-20.4%
Gross Profit

$108M

Previous: $118M-8.4%
Cash & Equivalents

$119M

Previous: $112M+5.8%
Total Assets

$1.51B

Previous: $1.46B+3.3%
Stock-Based Comp

$2.63M

Previous: $1.87M+40.9%

Revenue & EPS history

Alamo Group · Revenue · Quarterly

$416M

Q2 2024-5.5%vs Q2 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 company's outlook for the third quarter and the balance of 2024 remains somewhat cautious due to the need to reduce channel inventory in the Vegetation Management segment. However, the prospects for the Industrial Equipment Division remain excellent.

Tailwinds

  • Prospects for the Industrial Equipment Division remain excellent for the remainder of 2024 and into the first quarter of 2025.
  • Industrial Equipment Division has a robust order backlog.
  • Industrial Equipment Division has a healthy pipeline of active sales opportunities.
  • Cost reduction measures already taken are expected to benefit results in the second half of 2024 and beyond.
  • Progress is being made and dealer inventories are moving lower.

Headwinds

  • More work remains to be done to reduce channel inventory.
  • The outlook for the third quarter and the balance of 2024 remains somewhat cautious.
  • Global softness in the markets for Vegetation Management equipment continued.
  • Channel inventories remained above normal levels.
  • Market situation in Vegetation Management requiring actions to improve operating efficiencies, reduce costs and eliminate excess capacity.

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 2024

Historical avgQ2 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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