ALTG Earnings Prediction
The chart below shows how ALTG performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ALTG sees a +3.20% change in stock price 10 days leading up to the earnings, and a -2.87% change 10 days following the report. On the earnings day itself, the stock moves by -2.07%. This data can give you a slight idea of what to expect for the next quarter's release.
ALTG Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
448.80M
-3.73%
-8.05%
Gross Margin
26.16%
1.04%
2.31%
Operating Margin
1.52%
-48.99%
-27.96%
Net Margin
-6.17%
-488.05%
152.87%
EPS
-0.86
-530.00%
126.32%
No Data Available
ALTG Earnings Analysis
Alta Equipment Group Inc. Corporation (ALTG.N) Earnings Conference Call
Positive
Quarterly Revenue Analysis: The company recorded revenue of $448.8 million for the third quarter, which is down $17.4 million versus Q3 of last year but shows a sequential increase of $39.3 million against Q2, indicating strong recovery in sales.
Product Support Revenue Increase: Product support revenues held up and were boosted by additional technician headcount and higher market rates for labor, contributing to a revenue increase of 7.8% to $140.2 million.
Material Handling Revenue Increase: In the Material Handling segment, revenues saw a modest increase largely due to progress on a substantial sales backlog, demonstrating strong demand in this area.
High-Margin Product Support Growth: Collectively from all segments, the high-margin product support business continues to perform strongly with revenue increasing 7.8% to $140.2 million, showcasing the stability of the dealer ship model.
Strong Liquidity Position: The company ended the quarter with a comfortable $320 million of liquidity, providing maximum flexibility to operate the business in any macro environment that may be out ahead of us.
Negative
Revenue Decline Analysis: Revenue decreased by $17.4 million compared to Q3 of last year, and down $39.3 million sequentially against Q2, primarily due to a decline in new and used equipment sales.
Construction Equipment Revenue Decline: Construction equipment segment revenues decreased by $44.5 million or 29.5% on an organic basis, indicating a significant drop in demand.
Rental Revenue Stagnation: Rental revenue for the quarter was effectively flat compared to last year and sequentially versus Q2, showing stagnation in rental operations.
Adjusted EBITDA Decline: The company recorded adjusted EBITDA of $43.2 million for the quarter, down $7.8 million from the adjusted level of Q3 2023, reflecting operational challenges.
Material Handling Revenue Stability: The material handling segment saw effectively flat year-over-year revenue at approximately $170 million, indicating a lack of growth in this key area.
ALTG FAQs
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ALTG Earning Call Sentiment
Alta Equipment Group Inc. (ALTG) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
ALTG.N
-6.25%Positive
The earnings call presents a mixed picture. Financial performance has declined in key areas, but product support revenue has grown. The Q&A reveals concerns about equipment sales weakness and leverage, although there are plans for cost optimization and cash flow improvement. The expanded share buyback program is positive, but the market conditions and increased leverage ratio offset this. The eMobility backlog and strategic partnerships offer potential, but immediate impacts are not evident. Overall, the sentiment is neutral as positive and negative factors balance each other out.
