NYSE$ALG

Alamo Group Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported record third quarter sales and earnings, driven by effective price management and disciplined control of operating expenses, despite persistent headwinds.

Alamo Group Inc. reported record results for the third quarter ended September 30, 2022. Net sales were $368.8 million, up 9.0%. Net income improved 46.9% to $25.8 million, or $2.16 per diluted share. The Company’s backlog at the end of the third quarter was $908.9 million, an increase of $263.7 million, or 40.9%, from the backlog at the end of the third quarter of 2021.

  • Net sales of $368.8 million, up 9.0%.
  • Vegetation Management net sales of $228.5 million, up 8.9%.
  • Industrial Equipment net sales of $140.3 million, up 9.2%.
  • Net income of $25.8 million, or $2.16 per diluted share, up 46.9%.

Headline financials

Total Revenue

$369M

Previous: $338M+9.0%
EPS (adj)

$2.16

Previous: $1.59+35.8%
Gross Margin

25.0%

No prior period
Total Backlog

$909M

Previous: $645M+40.9%
Capital Expenditures

-$23.5M

Previous: -$14.6M-61.1%
Free Cash Flow

$2.32M

Previous: $2.94M-20.9%
Net Income

$25.8M

Previous: $17.5M+47.4%
Operating Income

$35.8M

Previous: $30M+19.3%
Gross Profit

$92.4M

Previous: $86.3M+7.0%
Cash & Equivalents

$75.3M

Previous: $89.2M-15.6%
Total Assets

$1.33B

Previous: $1.22B+9.0%
Stock-Based Comp

$1.51M

Previous: $2.84M-46.9%

Revenue & EPS history

Alamo Group · Revenue · Quarterly

$369M

Q3 2022+9%vs Q3 2021
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 is expecting fourth quarter sales to show solid growth relative to the fourth quarter of 2021 and anticipates that earnings will continue to improve on a year-over-year basis. However, exchange rates are likely to negatively impact sales when compared to the prior year. The company continue to anticipate a gradual improvement in supply chain performance; however, the timing remains uncertain and problems associated with labor shortages are expected to persist.

Tailwinds

  • Expecting fourth quarter sales to show solid growth relative to the fourth quarter of 2021.
  • Anticipate that earnings will continue to improve on a year-over-year basis.
  • Continue to anticipate a gradual improvement in supply chain performance.
  • Strength and health of backlog continues to provide us with confidence about the performance of the Company for the remainder of this year and the near future.
  • Sales and earnings will expand nicely once the supply side issues resolve.

Headwinds

  • Exchange rates are likely to negatively impact sales when compared to the prior year.
  • The timing of supply chain improvements remains uncertain.
  • Problems associated with labor shortages are expected to persist.
  • Supply chain delays and shortages again constrained sales during the third quarter.
  • The combination of supply chain delays and labor shortages once again reduced operational efficiency and resulting gross margin during the third quarter.

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 2022

Historical avgQ3 2022

+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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