NYSE$ALG

Alamo Group Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Alamo Group achieved record sales and earnings for the ninth consecutive quarter in Q4 2023.

Alamo Group Inc. reported an 8% increase in net sales, reaching $417.5 million, and a 5% increase in operating income, amounting to $44.8 million, for the fourth quarter of 2023. Net income for the quarter rose by 8% to $31.5 million, or $2.63 per diluted share. The company's backlog at the end of 2023 stood at $860 million.

  • Net sales increased by 8% to $417.5 million.
  • Operating income increased by 5% to $44.8 million.
  • Net income increased by 8% to $31.5 million, or $2.63 per diluted share.
  • Year-end backlog was $860 million.

Headline financials

Total Revenue

$418M

Previous: $387M+8.0%
EPS (adj)

$2.63

Previous: $2.44+7.8%
Operating Margin

10.7%

No prior period
Gross Margin

26.1%

No prior period
Capital Expenditures

$10.7M

Previous: $7.64M+39.9%
Net Income

$31.5M

Previous: $29.2M+8.1%
Operating Income

$44.8M

Previous: $42.7M+4.9%
Gross Profit

$105M

Previous: $97.8M+7.2%
Stock-Based Comp

$2.05M

Previous: $932K+120.1%

Revenue & EPS history

Alamo Group · Revenue · Quarterly

$418M

Q4 2023+8%vs Q4 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

Alamo Group anticipates continued strength in the Industrial Equipment Division due to governmental agency sales, expects softness in Vegetation Management to persist through Q1, but anticipates relief later in the year with modestly lower interest rates.

Tailwinds

  • Company backlog remains at a healthy level.
  • Quality of backlog remains excellent.
  • Anticipated relief in the form of modestly lower interest rates should help clear inventory overhang and invigorate dealer demand.
  • Industrial Equipment Division will continue to display strength in 2024 driven by its sales to governmental agencies.
  • Company remains confident regarding its performance in 2024 and believes it will be another excellent year.

Headwinds

  • Softness in Vegetation Management may persist through the first quarter.
  • Forestry and Tree Care activity remained constrained by the combined effects of price pressure for domestic wood pellets.
  • Slowing demand for land clearing equipment and sluggish housing starts.
  • Farm and ranch market also remained soft due to lower cattle prices, less favorable commodity prices and declining agricultural exports.
  • Channel inventories remained above optimal levels in the fourth quarter and dealers were reluctant to place new stock orders while interest rates remained elevated.

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 2023

Historical avgQ4 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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