NYSE$ALG

Alamo Group Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported record net sales and increased net income for the third quarter of 2020.

Alamo Group's net sales for the third quarter of 2020 were $291.8 million, an increase of 7.3% compared to the third quarter of 2019. Net income for the quarter was $20.0 million, or $1.69 per diluted share, compared to net income of $17.4 million, or $1.47 per diluted share, in the third quarter of 2019, an increase of 15.0%.

  • Record net sales for a third quarter of $291.8 million, up 7.3%
  • Industrial Division net sales $196.2 million, up 10.1%
  • Agricultural Division net sales $95.5 million, up 2.0%
  • Net income for the third quarter of $20.0 million, up 15.0%

Headline financials

Total Revenue

$292M

Previous: $272M+7.3%
EPS (adj)

$1.67

Previous: $1.54+8.4%
Total Backlog

$255M

No prior period
Capital Expenditures

-$15M

Previous: -$19.5M+23.2%
Free Cash Flow

$5.07M

Previous: -$2.07M+345.0%
Net Income

$20M

Previous: $17.4M+15.0%
Operating Income

$30.9M

Previous: $24.5M+26.4%
Gross Profit

$78.6M

Previous: $68.7M+14.4%
Cash & Equivalents

$93.5M

Previous: $60.3M+55.1%
Total Assets

$1.17B

Previous: $856M+37.0%
Stock-Based Comp

$1.08M

Previous: $766K+40.9%

Revenue & EPS history

Alamo Group · Revenue · Quarterly

$292M

Q3 2020+7.3%vs Q3 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Alamo Group · $196M total across 1 segment · Q3 2020

  • Industrial Equipment
    $196M+10.1%

Forward guidance

The Company is optimistic about the outlook for Alamo Group as they believe the positive momentum they are currently experiencing should help their fourth quarter results and continue into 2021.

Tailwinds

  • Positive momentum is expected to continue into 2021.
  • Proactive management through the pandemic is expected.
  • Adjustments to staffing will be made as needed.
  • Expenses will be controlled.
  • Quick reactions to changes affecting the Company and business are expected.

Headwinds

  • Uncertainty remains until there is a clearer resolution to the COVID pandemic.
  • Uncertainty surrounding the upcoming elections in the U.S.
  • The fourth quarter tends to be one of the weaker quarters due to holidays.
  • The fourth quarter tends to be one of the weaker quarters due to lower operating levels during winter months by end users.
  • Industrial Division's backlog is softer than the pre-COVID levels

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 Q3 2020

Historical avgQ3 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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