Equipment distribution company Alta Equipment Group (NYSE:ALTG) will be announcing earnings results this Thursday afternoon. Here’s what to expect.
Alta missed analysts’ revenue expectations last quarter, reporting revenues of $410.5 million, down 3% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EBITDA estimates.
Is Alta a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Alta’s revenue to grow 2% year on year, a reversal from the 1.4% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Alta has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Alta’s peers in the specialty equipment distributors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Richardson Electronics delivered year-on-year revenue growth of 27.6%, beating analysts’ expectations by 19.6%, and Custom Truck One Source reported revenues up 10.2%, topping estimates by 8.8%. Richardson Electronics traded up 21.2% following the results while Custom Truck One Source was also up 3.6%.
Read our full analysis of Richardson Electronics’s results here and Custom Truck One Source’s results here.
Investors in the specialty equipment distributors segment have had steady hands going into earnings, with share prices flat over the last month. Alta is up 15.2% during the same time and is heading into earnings with an average analyst price target of $10.60 (compared to the current share price of $7.47).
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