Overview

* Alamo Group ( ALG ) Q3 net sales rise 4.7%, beating analyst expectations

* EPS for Q3 misses analyst estimates, reflecting operational challenges

* Industrial Equipment Division sales grow 17%, while Vegetation Management sales decline 9%

Outlook

* Company sees healthy backlog levels in Industrial Equipment Division

* Alamo Group ( ALG ) plans to invest in organic growth and acquisitions

Result Drivers

* INDUSTRIAL EQUIPMENT GROWTH - Industrial Equipment Division sales increased 17% due to healthy backlog and modest growth in bookings

* VEGETATION MANAGEMENT DECLINE - Vegetation Management Division sales decreased 9% due to softness in end markets

* OPERATIONAL INITIATIVES - Co is consolidating facilities in Vegetation Management Division to reduce fixed costs and improve productivity

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Beat $420 mln $407.50

mln (4

Analysts

)

Q3 EPS Miss $2.10 $2.64 (4

Analysts

)

Q3 Net Miss $25.40 $32.40

Income mln mln (3

Analysts

)

Q3 Miss $37.50 $45.40

Operatin mln mln (3

g Income Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the heavy machinery & vehicles peer group is "buy"

* Wall Street's median 12-month price target for Alamo Group Inc ( ALG ) is $234.00, about 24.3% above its November 5 closing price of $177.22

* The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)