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Equipment distribution company Alta Equipment Group (NYSE:ALTG) will be reporting results tomorrow afternoon. Here’s what to look for.
Alta beat analysts’ revenue expectations by 2.6% last quarter, reporting revenues of $498.1 million, down 4.5% year on year. It was a slower quarter for the company, with and a significant miss of analysts’ adjusted operating income estimates.
Is Alta a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Alta’s revenue to decline 2% year on year to $432.9 million, a reversal from the 5% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.48 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Alta has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Alta’s peers in the specialty equipment distributors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. SiteOne delivered year-on-year revenue growth of 3.8%, beating analysts’ expectations by 0.6%, and United Rentals reported revenues up 6.7%, topping estimates by 2.5%. SiteOne traded up 2.6% following the results while United Rentals was also up 10.1%.
Read our full analysis of SiteOne’s results here and United Rentals’s results here.
There has been positive sentiment among investors in the specialty equipment distributors segment, with share prices up 12.3% on average over the last month. Alta is up 15.5% during the same time and is heading into earnings with an average analyst price target of $9.28 (compared to the current share price of $4.85).
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