Alamo Group (NYSE:ALG) Releases Quarterly Earnings Results, Beats Expectations By $0.08 EPS

Key Points

• Alamo Group exceeded quarterly expectations, reporting earnings of $2.82 per share versus the $2.74 consensus estimate, while revenue reached $450.73 million compared with expectations of $437.48 million.
• Shares rose 3.0% to $163.90 following the results. The company maintains a quarterly dividend of $0.34, equivalent to $1.36 annually and a 0.8% yield.
• Analysts hold a “Moderate Buy” consensus rating, with an average price target of $224.00; institutional investors own 92.36% of Alamo Group’s outstanding shares.

Alamo Group (NYSE:ALG - Get Free Report) announced its earnings results on Monday. The industrial products company reported $2.82 EPS for the quarter, topping analysts' consensus estimates of $2.74 by $0.08, FiscalAI reports. The business had revenue of $450.73 million during the quarter, compared to the consensus estimate of $437.48 million. Alamo Group had a net margin of 6.21% and a return on equity of 9.71%.

Alamo Group Stock Up 3.0%

ALG stock traded up $4.82 during trading on Monday, hitting $163.90. 126,378 shares of the company's stock were exchanged, compared to its average volume of 157,229. The business has a 50-day moving average price of $159.62 and a two-hundred day moving average price of $173.03. Alamo Group has a 52-week low of $145.76 and a 52-week high of $233.29. The company has a current ratio of 4.32, a quick ratio of 2.45 and a debt-to-equity ratio of 0.23. The stock has a market capitalization of $1.99 billion, a price-to-earnings ratio of 19.60, a PEG ratio of 0.93 and a beta of 1.10.

Alamo Group Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, July 29th. Shareholders of record on Thursday, July 16th were paid a $0.34 dividend. The ex-dividend date was Thursday, July 16th. This represents a $1.36 dividend on an annualized basis and a yield of 0.8%. Alamo Group's dividend payout ratio (DPR) is currently 16.27%.

Wall Street Analyst Weigh In

ALG has been the topic of a number of research reports. Weiss Ratings lowered shares of Alamo Group from a "hold (c)" rating to a "hold (c-)" rating in a research note on Tuesday, May 26th. Zacks Research raised shares of Alamo Group from a "strong sell" rating to a "hold" rating in a report on Tuesday, May 5th. Finally, DA Davidson reaffirmed a "neutral" rating and issued a $188.00 price target on shares of Alamo Group in a research note on Wednesday, July 1st. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $224.00.

Institutional Trading of Alamo Group

Several institutional investors and hedge funds have recently added to or reduced their stakes in ALG. Global Retirement Partners LLC grew its stake in shares of Alamo Group by 136.2% during the 4th quarter. Global Retirement Partners LLC now owns 307 shares of the industrial products company's stock worth $52,000 after purchasing an additional 177 shares during the period. Jones Financial Companies Lllp grew its holdings in Alamo Group by 3,140.0% during the 1st quarter. Jones Financial Companies Lllp now owns 324 shares of the industrial products company's stock valued at $58,000 after buying an additional 314 shares during the last quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main purchased a new stake in Alamo Group during the 2nd quarter worth about $87,000. Kestra Advisory Services LLC acquired a new position in shares of Alamo Group in the fourth quarter valued at approximately $76,000. Finally, Globeflex Capital L P purchased a new position in shares of Alamo Group during the 2nd quarter worth $100,000. 92.36% of the stock is owned by hedge funds and other institutional investors.

Alamo Group Company Profile

Alamo Group, Inc engages in the design, manufacture and marketing of equipment for vegetation management, roadside maintenance, agricultural harvesting and industrial applications. The company offers a broad portfolio of products, including boom mowers, flail mowers, rotary cutters, snow removal equipment, slurry seal machines, railcar movers and tow tractors. These offerings are distributed under a variety of brand names and through a network of independent dealerships and distributors, meeting the needs of municipalities, highway departments, agricultural producers and industrial operators.

The company operates through two primary segments: Agricultural and Industrial.

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