NYSE$ALG

Alamo Group Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported record fourth quarter and year end results, driven by strong sales growth and improved operating margins.

Alamo Group Inc. reported a strong fourth quarter and year-end 2022, with record net sales and earnings. Fourth quarter net sales increased by 15% to $386.6 million, and net income rose by 52% to $29.2 million, or $2.44 per diluted share. The company's backlog exceeded $1.0 billion, up 26% from the previous year.

  • Fourth quarter net sales increased by 15% to $386.6 million.
  • Fourth quarter operating income increased by 53% to $42.7 million.
  • Fourth quarter net income increased by 52% to $29.2 million, or $2.44 per diluted share.
  • Backlog exceeded $1.0 billion, a 26% increase compared to the end of 2021.

Headline financials

Total Revenue

$387M

Previous: $337M+14.7%
EPS (adj)

$2.44

Previous: $1.62+50.6%
Capital Expenditures

$7.64M

Previous: $10.7M-28.4%
Free Cash Flow

$28.1M

Previous: -$4.4M+738.0%
Net Income

$29.2M

Previous: $19.2M+51.7%
Operating Income

$42.7M

Previous: $27.9M+53.3%
Gross Profit

$97.8M

Previous: $83.7M+16.9%
Cash & Equivalents

$47M

Previous: $42.1M+11.6%
Total Assets

$1.31B

Previous: $1.21B+8.5%
Stock-Based Comp

$932K

Previous: $591K+57.7%

Revenue & EPS history

Alamo Group · Revenue · Quarterly

$387M

Q4 2022+14.7%vs Q4 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 confident in its ability to drive further performance improvements, supported by the continued strength of its markets and the size and quality of its backlog.

Tailwinds

  • Markets continue to display strength.
  • Governmental agencies remain in good fiscal health.
  • Forestry and tree care segment is strong.
  • Demand from the agricultural sector is good.
  • Backlog provides good visibility for the first half of 2023.

Headwinds

  • Supply chain performance needs further improvement.
  • Truck chassis deliveries remain constrained.
  • Labor shortages persist, particularly in manufacturing.
  • Material cost inflation continues.
  • Potential impact of currency translation.

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 2022

Historical avgQ4 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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