Alamo Group (ALG) Tops Q2 EPS by 20c, Revenues Beat

Alamo Group (NYSE: ALG) reported Q2 EPS of $1.60, $0.20 better than the analyst estimate of $1.40. Revenue for the quarter came in at $257.1 million versus the consensus estimate of $240.67 million.

Comments on Results

Ron Robinson, Alamo Group's President and Chief Executive Officer, commented, "We are very pleased with Alamo's record second quarter results which added nicely to our strong first quarter showing. While we continued to benefit from U.S. tax reform measures and the acquisitions we completed in 2017, we were able to produce record results even before these contributions as our core business continued to strengthen. This was evident in both our top line sales, where organic growth was nearly 9 percent, as well as operating income levels, where our margins showed continued improvement. We are particularly pleased with the growth in margin percentage given the cost increases we have experienced this year, which are above the pace of the last several years. We feel we have been able to lessen the effects of these cost increases by reacting quickly, however this has been, and will continue to be, challenging given the magnitude and timing of some of these changes, particularly new tariffs recently imposed on imported components. Our margin percentage was also helped by favorable production efficiencies and fixed cost leveraging which more than offset unfavorable mix effect which occurs when whole goods sales growth outpaces growth of aftermarket parts sales."

For earnings history and earnings-related data on Alamo Group (ALG) click here.

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