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Market Overview

Alamo Group's Earnings Outlook

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On Thursday, February 25, Alamo Group (NYSE:ALG) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Alamo Group EPS will likely be near $1.37 while revenue will be around $289.77 million, according to analysts. In the same quarter last year, Alamo Group announced EPS of $1.32 on revenue of $300.19 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to post earnings in line with the consensus estimate when it reports Thursday, EPS would be up 3.79%. Revenue would be down 3.47% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 1.37 0.81 1.38 1.51
EPS Actual 1.67 1.06 1.29 1.32
Revenue Estimate 279.48 M 273.48 M 327.82 M 293.21 M
Revenue Actual 291.76 M 268.63 M 314.45 M 300.19 M

Stock Performance

Shares of Alamo Group were trading at $159.48 as of February 22. Over the last 52-week period, shares are up 39.61%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Alamo Group is scheduled to hold the call at 11:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings