NYSE$ALG

Alamo Group Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported record sales and earnings, driven by strong demand and improved supply chain performance.

Alamo Group Inc. reported record third-quarter results, with net sales increasing by 13.8% to $419.6 million and net income rising by 35.2% to $34.9 million, or $2.91 per diluted share. The company benefited from strong demand from governmental agencies and industrial contractors, as well as improvements in supply chain performance.

  • Achieved eighth consecutive quarterly record for sales and earnings.
  • Net sales increased by 13.8%, with Vegetation Management up 8.0% and Industrial Equipment up 23.1%.
  • Income from operations increased by 38.8%, representing 11.9% of net sales.
  • Net income rose by 35.2% to $34.9 million, or $2.91 per diluted share.

Headline financials

Total Revenue

$420M

Previous: $369M+13.8%
EPS (adj)

$2.91

Previous: $2.16+34.7%
Gross Margin

27.2%

Previous: 25.0%+8.8%
Total Backlog

$891M

Previous: $909M-2.0%
Capital Expenditures

-$27.1M

Previous: -$23.5M-15.1%
Free Cash Flow

$7.86M

Previous: $2.32M+238.7%
Net Income

$34.9M

Previous: $25.8M+35.2%
Operating Income

$49.8M

Previous: $35.8M+38.8%
Gross Profit

$114M

Previous: $92.4M+23.6%
Cash & Equivalents

$114M

Previous: $75.3M+50.8%
Total Assets

$1.46B

Previous: $1.33B+9.6%
Stock-Based Comp

$1.81M

Previous: $1.51M+19.7%

Revenue & EPS history

Alamo Group · Revenue · Quarterly

$420M

Q3 2023+13.8%vs Q3 2022
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 expects the trends of the past several quarters to continue, with fleet and infrastructure investment by government agencies remaining elevated. While weakness in the farm and ranch segment is expected to persist, conditions are not anticipated to further deteriorate. The company's strong order backlog provides excellent forward visibility, which bodes well for performance for the remainder of the year and the first several quarters of 2024.

Tailwinds

  • Fleet and infrastructure investment by government agencies is likely to remain elevated.
  • Strong, high quality order backlog gives excellent forward visibility.
  • Expects to continue to execute strategy efficiently.
  • Confident to continue to grow at double digit rates.
  • Confident to further optimize operating margin.

Headwinds

  • Adverse economic conditions could lead to a reduction in overall market demand.
  • Supply chain disruptions.
  • Labor constraints.
  • Increasing costs due to inflation.
  • Weakness in the farm and ranch segment is expected to persist.

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 2023

Historical avgQ3 2023

+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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