Alamo Group (NYSE:ALG) Releases Earnings Results, Misses Estimates By $0.56 EPS

Key Points

• Alamo Group reported quarterly EPS of $2.06, missing the $2.62 analyst consensus by $0.56. Revenue was $403.14 million, below estimates of $437.11 million.
• Shares rose $5.38 to $153.14 in Monday trading, while the company maintained its quarterly dividend at $0.34 per share, representing a 0.9% yield.
• Analysts maintain a “Moderate Buy” consensus rating with an average price target of $188, although Weiss Ratings downgraded the stock to “hold (c-).”

Alamo Group (NYSE:ALG - Get Free Report) announced its quarterly earnings data on Monday. The industrial products company reported $2.06 EPS for the quarter, missing analysts' consensus estimates of $2.62 by ($0.56), FiscalAI reports. The firm had revenue of $403.14 million during the quarter, compared to the consensus estimate of $437.11 million. Alamo Group had a net margin of 6.08% and a return on equity of 9.83%.

Alamo Group Stock Performance

Shares of ALG stock traded up $5.38 during trading on Monday, reaching $153.14. 219,474 shares of the company's stock were exchanged, compared to its average volume of 162,496. Alamo Group has a twelve month low of $142.84 and a twelve month high of $219.88. The firm's fifty day moving average price is $159.56 and its 200-day moving average price is $169.04. The company has a quick ratio of 2.48, a current ratio of 4.39 and a debt-to-equity ratio of 0.22. The stock has a market capitalization of $1.86 billion, a PE ratio of 18.36, a PEG ratio of 0.88 and a beta of 1.08.

Alamo Group Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, October 28th. Investors of record on Thursday, October 15th were issued a dividend of $0.34 per share. The ex-dividend date of this dividend was Thursday, October 15th. This represents a $1.36 dividend on an annualized basis and a dividend yield of 0.9%. Alamo Group's payout ratio is presently 16.31%.

Insider Transactions at Alamo Group

In other Alamo Group news, EVP Edward Rizzuti sold 2,537 shares of the firm's stock in a transaction on Friday, September 4th. The stock was sold at an average price of $174.68, for a total transaction of $443,163.16. Following the completion of the sale, the executive vice president owned 5,605 shares of the company's stock, valued at $979,081.40. This trade represents a 31.16% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 1.06% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

Separately, Weiss Ratings downgraded shares of Alamo Group from a "hold (c)" rating to a "hold (c-)" rating in a research note on Friday, October 2nd. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $188.00.

About Alamo Group

Alamo Group Inc NYSE: ALG manufactures equipment used in the maintenance of infrastructure, vegetation, and agricultural land. Its products are primarily sold to municipalities, government agencies, contractors, utility companies, transportation departments, and agricultural customers.

The company's product portfolio includes mowing and vegetation-management equipment, street sweepers, snow-removal equipment, vacuum trucks, excavators, agricultural implements, and other specialized machinery.

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