Allient Inc Reports Second Quarter 2024 Financial Results
Intellectia.AI2024-08-08
Allient Inc. Reports Second Quarter 2024 Financial Results
Allient Inc. (NASDAQ: ALNT) has reported its financial results for the second quarter ended June 30, 2024.
Key Financial Metrics:
| Metric | Q2 2024 | Q1 2024 | Q2 2023 | YoY Change (%) | QoQ Change (%) | Consensus Estimate | Comparison to Estimates |
|---|---|---|---|---|---|---|---|
| Revenue | $136.0M | $139.1M | $146.7M | -7.3% | -2.2% | $139.64M | Slightly below |
| Earnings Per Share (EPS) | $0.07 | $0.11 | $0.42 | -83.3% | -36.4% | $0.42 | Below expectations |
Interpretation: Allient Inc. saw a decrease in revenue and earnings per share (EPS) year-over-year (YoY) and quarter-over-quarter (QoQ). The reported figures were below Wall Street consensus estimates, reflecting weaker-than-expected performance primarily due to inventory reserves and gross margin dilution from recent acquisitions.
Revenue Performance by Segment:
| Segment | Q2 2024 Revenue | Performance |
|---|---|---|
| Vehicle Markets | Down 17% | Lower demand in powersports and agriculture, partially offset by higher demand in commercial automotive |
| Industrial | Down 3% | Lower demand in industrial automation, pumps, and material handling offset by higher power quality sales and contributions from acquisitions |
| Medical | Down 8% | Broad end-market lower demand |
| Aerospace & Defense | Down 3% | Due to program timing within the industry |
Interpretation: Each major segment experienced a decline in revenue, with the Vehicle markets and Medical segment seeing the largest reductions. Industrial sales displayed a marginal decline mitigated by higher power quality sales and acquisitions.
Key Operational Data:
| Key Metric | Value |
|---|---|
| Gross Margin | 29.9% |
| Net Income | $1.2M |
| Operating Income | $4.9M |
| Adjusted EBITDA | $13.9M |
| Cash Provided by Operations | $17.4M |
| Total Debt | $236.9M |
| Net Debt to Capitalization Ratio | 43.6% |
Management Comments:
Dick Warzala, Chairman and CEO of Allient Inc., noted significant demand shifts in June, especially in the Industrial and recreational markets. He stated that inventory rebalancing at larger customers and gross margin dilution from recent acquisitions impacted earnings. Despite near-term challenges, the Simplify to Accelerate NOW plan remains critical for aligning the business with market conditions and driving long-term growth.
Dividends and Share Repo Program:
No dividends or share buyback program details were announced.
Forward Guidance:
The company provided forward guidance indicating market conditions are expected to persist through the second half of 2024, with an annualized revenue run rate level below $500 million over the next several quarters. Full year results will exceed the projected third and fourth-quarter annual run rate.
Stock Price Movement:
Following the earnings release, Allient Inc.’s stock price fell by approximately -2.37%.
The report has been organized into a clear and concise format suitable for investors.
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