Alliance Laundry (NYSE:ALH - Get Free Report) announced its earnings results on Tuesday. The company reported $0.38 EPS for the quarter, topping the consensus estimate of $0.32 by $0.06, Zacks reports. The firm had revenue of $460.92 million for the quarter. Alliance Laundry had a net margin of 10.08% and a return on equity of 81.92%.
Here are the key takeaways from Alliance Laundry's conference call:
- Third-quarter revenue rose 5% to $461 million, while adjusted EBITDA increased 14% to $127 million and margin expanded 217 basis points to 27.5%. Results included a $5 million tariff refund; excluding it, adjusted EBITDA still grew about 10%.
- Alliance raised its full-year adjusted EBITDA growth outlook to approximately 10%, the high end of its prior range, while maintaining revenue growth guidance of 6%–7%. The company expects continued cost pressure in Q4, particularly from steel, and says tariff refunds received through Q3 will not recur in that quarter.
- North America revenue grew 8%, led by Commercial In-Home and On-Premise Laundry, with segment adjusted EBITDA up 21%. Vended results were affected by permitting and construction delays, which management characterized as timing-related, with underlying demand remaining strong.
- International revenue declined 1%, partly due to foreign currency translation, while adjusted EBITDA rose and margin improved. Regional results varied: Latin America was solid, Europe steady, and Asia Pacific softer due to project timing.
- Alliance paid down $45 million of debt in the quarter and repurchased $75 million of shares; net leverage ended Q3 at 2.25 times. Management says deleveraging remains a priority, while future capital allocation could also include business investment or further buybacks.
Alliance Laundry Stock Performance
NYSE ALH traded up $0.14 during midday trading on Tuesday, hitting $24.18. The company had a trading volume of 510,667 shares, compared to its average volume of 969,251. The firm has a fifty day simple moving average of $21.71 and a two-hundred day simple moving average of $23.50. Alliance Laundry has a fifty-two week low of $18.64 and a fifty-two week high of $28.23. The company has a quick ratio of 1.14, a current ratio of 1.43 and a debt-to-equity ratio of 3.35. The stock has a market cap of $4.81 billion and a price-to-earnings ratio of 26.63.
Analysts Set New Price Targets
A number of equities research analysts have issued reports on ALH shares. Zacks Research upgraded shares of Alliance Laundry from a "hold" rating to a "strong-buy" rating in a report on Monday, October 26th. Weiss Ratings upgraded Alliance Laundry from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Wednesday, November 4th. JPMorgan Chase & Co. boosted their price objective on Alliance Laundry from $31.00 to $32.00 and gave the stock an "overweight" rating in a research report on Friday, August 14th. Robert W. Baird increased their target price on Alliance Laundry from $32.00 to $34.00 and gave the company an "outperform" rating in a research note on Friday, August 14th. Finally, BMO Capital Markets increased their target price on Alliance Laundry from $30.00 to $31.00 and gave the company an "outperform" rating in a research note on Monday, August 17th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, Alliance Laundry presently has a consensus rating of "Moderate Buy" and an average price target of $30.20.
Read Our Latest Stock Analysis on Alliance Laundry
Key Alliance Laundry News
Here are the key news stories impacting Alliance Laundry this week:
Insider Activity at Alliance Laundry
In related news, COO Gommaar Vleugels sold 75,000 shares of the stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $21.05, for a total value of $1,578,750.00. Following the completion of the sale, the chief operating officer owned 374,563 shares in the company, valued at approximately $7,884,551.15. This trade represents a 16.68% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 7.60% of the company's stock.
Alliance Laundry Company Profile
(
Get Free Report)
Alliance Laundry Holdings, Inc. designs, manufactures and sells commercial laundry equipment. Its products include washers, dryers and related laundry systems for laundromats and customers in sectors such as hospitality, healthcare, multifamily housing and other institutional markets. The company serves customers worldwide through brands including Speed Queen, UniMac, Huebsch, Primus and IPSO. Its offerings include equipment for self-service and on-premises laundry operations, along with related parts and services.
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