The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Alamo Group met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly. Non-GAAP earnings per share increased. GAAP earnings per share shrank significantly.
Gross margins grew, operating margins expanded, net margins dropped.
Alamo Group reported revenue of $149.4 million. The three analysts polled by S&P Capital IQ wanted to see revenue of $149.9 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.40. The three earnings estimates compiled by S&P Capital IQ predicted $0.29 per share. Non-GAAP EPS of $0.40 for Q4 were 2.6% higher than the prior-year quarter's $0.39 per share. GAAP EPS of $0.35 for Q4 were 44% lower than the prior-year quarter's $0.62 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 21.4%, 200 basis points better than the prior-year quarter. Operating margin was 5.1%, 110 basis points better than the prior-year quarter. Net margin was 2.8%, 230 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $154.2 million. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $634.2 million. The average EPS estimate is $2.36.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 94 members out of 103 rating the stock outperform, and nine members rating it underperform. Among 36 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 give Alamo Group a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Alamo Group is outperform, with an average price target of $35.50.
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