NYSE$ALTG

Alta Equipment Group Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Alta reported a net loss impacted by market uncertainty and discrete tax expense.

Alta Equipment Group reported a decrease in total revenues to $448.8 million, impacted by uncertainty in end-user markets and a $14.0 million discrete tax expense. Despite challenges in equipment sales, the product support business performed well, and the company reduced net debt by $38.7 million. The Board of Directors approved an increase to the share buyback authorization from $12.5 million to $20.0 million.

  • Total revenues decreased to $448.8 million year over year.
  • Construction Equipment and Material Handling revenues were $262.3 million and $168.9 million, respectively.
  • Product support revenues increased 7.8% year over year, with Parts sales increasing to $75.6 million and Service revenues increasing to $64.6 million.
  • Net loss available to common stockholders of $(28.4) million, or $(0.86) per share.

Headline financials

Total Revenue

$449M

Previous: $466M-3.7%
EPS (adj)

-$0.72

Previous: $0.36-300.0%
Capital Expenditures

-$11.4M

Previous: -$8.6M-32.6%
Free Cash Flow

-$39.1M

Previous: -$1.2M-3158.3%
Net Income

-$27.7M

Previous: $7.4M-474.3%
Operating Income

$6.8M

Previous: $13.9M-51.1%
Gross Profit

$125M

Previous: $126M-1.2%
Cash & Equivalents

$14.6M

Previous: $1.4M+942.9%
Total Assets

$1.55B

Previous: $1.48B+4.6%
Stock-Based Comp

$1.3M

Previous: $1.4M-7.1%

Revenue & EPS history

Alta · Revenue · Quarterly

$449M

Q3 2024-3.7%vs Q3 2023
Beat estimate in 7 of 14 quarters(50%)
ActualEstimate

Forward guidance

The Company updates our guidance range and now expects to report Adjusted EBITDA between $170.0 million and $175.0 million for the 2024 fiscal year.

Tailwinds

  • Construction equipment spending to be positively impacted by easing interest rates and more favorable lending conditions.
  • Infrastructure related project pipelines continue to be significant and still in the early stages
  • State DOT budgets are forecast to remain elevated in 2025.
  • Strong relationship with Hyster-Yale
  • Unmatched product support capabilities and resilient and diversified end markets will result in continued gains in market share in 2025.

Headwinds

  • Ongoing uncertainty in our end-user markets as it relates to customers committing to capital investment and purchasing new equipment.
  • Oversupply of new equipment
  • Challenging market in 2024
  • Customers put capital investments on hold while they waited for the election outcome and more clarity on interest rates.
  • Overall equipment markets have underperformed initial projections for 2024

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 2024

Historical avgQ3 2024

+0.0%

Avg return

Earnings day

-1.8%

Avg return

5 days after

-2.0%

Avg return

30 days after

39%

11 / 28 earnings

Positive

+23.3%

Q1 2020

Best reaction

-26.7%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.3%-23.0%-22.8%
Q4 2025-6.6%-12.7%-31.2%
Q3 2025-10.6%-14.3%-16.6%
Q1 2025-1.3%+18.0%+30.8%
Q4 2024-1.0%-3.7%-19.2%
Q3 2024-5.8%-17.4%-11.7%
Q2 2024-26.7%-34.2%-30.3%
Q1 2024-17.0%-27.6%-29.1%
Q4 2023+2.6%+11.9%+14.9%
Q3 2023+14.3%+11.1%+11.6%
Q2 2023-10.0%-13.4%-19.8%
Q1 2023+4.0%+11.1%+11.7%
Q4 2022-14.4%-18.3%-32.6%
Q3 2022+7.7%+4.6%+0.3%
Q2 2022+13.4%+13.0%+11.0%
Q1 2022-4.3%+0.5%+7.4%
Q4 2021+9.4%+4.2%-10.8%
Q3 2021+4.0%+3.4%-16.6%
Q2 2021-4.4%-7.2%-4.6%
Q1 2021+16.4%+13.7%+1.6%
Q4 2020+10.8%+3.2%+16.6%
Q3 2020-8.2%+0.0%+2.4%
Q2 2020+7.6%+1.3%-6.1%
Q1 2020+23.3%+32.2%+76.4%
Q4 2019-0.7%-7.0%+6.5%
Q3 2019+0.0%+0.0%+1.1%
Q2 2019-0.2%-0.5%+1.0%
Q1 2019+0.0%+1.3%+1.0%
Q4 2018
Q3 2018
Q2 2018
Q1 2018

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