The 10-second takeaway
For the quarter ended March 31 (Q1), Alamo Group beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly. GAAP earnings per share grew.
Gross margins dropped, operating margins contracted, net margins were steady.
Alamo Group recorded revenue of $158.4 million. The three analysts polled by S&P Capital IQ looked for a top line of $154.9 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 $0.57. The three earnings estimates compiled by S&P Capital IQ averaged $0.57 per share. GAAP EPS of $0.57 for Q1 were 1.8% higher than the prior-year quarter's $0.56 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 22.0%, 60 basis points worse than the prior-year quarter. Operating margin was 6.1%, 100 basis points worse than the prior-year quarter. Net margin was 4.4%, much about the same as the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $168.1 million. On the bottom line, the average EPS estimate is $0.76.
Next year's average estimate for revenue is $635.7 million. The average EPS estimate is $2.51.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 86 members out of 95 rating the stock outperform, and nine members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 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 $41.85.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Alamo Group. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.