NYSE$ALG

Alamo Group Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Alamo Group's Q4 2019 results were announced, revealing a mix of growth and challenges.

Alamo Group reported a 17.2% increase in net sales for Q4 2019, reaching $300.2 million. Net income for the quarter was $9.6 million, or $0.81 per diluted share. The results included the effects of acquisitions. Bookings for the fourth quarter, including acquisitions, were up 41.8% compared to the previous year.

  • Record net sales for the fourth quarter of $300.2 million, up 17.2%.
  • Industrial Division net sales increased by 29.3% to $222.4 million.
  • Agricultural Division net sales decreased by 7.5% to $77.7 million.
  • Net income for the fourth quarter was $9.6 million.

Headline financials

Total Revenue

$300M

Previous: $256M+17.2%
EPS (adj)

$1.32

Previous: $1.38-4.3%
Industrial Sales Growth

29.3%

Previous: 0.0%
Capital Expenditures

$11.8M

Previous: $7.81M+51.8%
Free Cash Flow

$32.8M

Previous: $1.52M+2059.1%
Net Income

$9.6M

Previous: $16.6M-42.1%
Operating Income

$18.2M

Previous: $24.7M-26.1%
Gross Profit

$68.1M

Previous: $62.6M+8.7%
Cash & Equivalents

$42.3M

Previous: $34M+24.3%
Total Assets

$1.21B

Previous: $722M+68.1%
Stock-Based Comp

$928K

Previous: $640K+45.0%

Revenue & EPS history

Alamo Group · Revenue · Quarterly

$300M

Q4 2019+17.2%vs Q4 2018
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Alamo Group · $222M total across 1 segment · Q4 2019

  • Industrial Equipment
    $222M+29.3%

Forward guidance

Alamo Group is optimistic about the outlook for 2020 and beyond, anticipating significant growth from recent acquisitions, new products, and operational initiatives. The company plans to focus on internal operations, integrating acquisitions, realizing synergies, managing cash, reducing debt, and improving operating margins.

Tailwinds

  • Recent acquisitions should lead to significant growth.
  • New products are expected to drive growth.
  • Operational initiatives should contribute to growth.
  • Stability of core products should continue to benefit the company.
  • There are signs of improvement in areas that have been challenging.

Headwinds

  • The coronavirus situation in Asia could impact the company.
  • The trade dispute between the U.S. and China is not fully resolved.
  • Brexit-related issues could come to a head later this year.
  • There are apparent slowing growth rates in Europe.
  • Other issues could affect the company's markets.

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 Q4 2019

Historical avgQ4 2019

+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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