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Specialty Equipment Distributors Stocks Q1 Recap: Benchmarking Alta (NYSE:ALTG)


Kayode Omotosho /
2024/07/04 7:43 am EDT

As the Q1 earnings season comes to a close, it’s time to take stock of this quarter's best and worst performers in the specialty equipment distributors industry, including Alta (NYSE:ALTG) and its peers.

Historically, specialty equipment distributors have boasted deep selection and expertise in sometimes narrow areas like single-use packaging or unique lighting equipment. Additionally, the industry has evolved to include more automated industrial equipment and machinery over the last decade, driving efficiencies and enabling valuable data collection. Specialty equipment distributors whose offerings keep up with these trends can take share in a still-fragmented market, but like the broader industrials sector, this space is at the whim of economic cycles that impact the capital spending and manufacturing propelling industry volumes.

The 9 specialty equipment distributors stocks we track reported a mixed Q1; on average, revenues beat analyst consensus estimates by 0.8%. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and specialty equipment distributors stocks have had a rough stretch, with share prices down 13.1% on average since the previous earnings results.

Alta (NYSE:ALTG)

Founded in 1984, Alta Equipment Group (NYSE:ALTG) is a provider of industrial and construction equipment and services across the Midwest and Northeast United States.

Alta reported revenues of $441.6 million, up 5% year on year, topping analysts' expectations by 5%. It was a weaker quarter for the company, with a miss of analysts' earnings estimates.

Alta Total Revenue

The stock is down 30% since the results and currently trades at $8.11.

Is now the time to buy Alta? Access our full analysis of the earnings results here, it's free.

Best Q1: Hudson Technologies (NASDAQ:HDSN)

Founded in 1991, Hudson Technologies (NASDAQ:HDSN) specializes in refrigerant services and solutions, providing refrigerant sales, reclamation, and recycling.

Hudson Technologies reported revenues of $65.25 million, down 15.5% year on year, outperforming analysts' expectations by 7.5%. It was an exceptional quarter for the company with revenue and EPS exceeding analysts' expectations.

Hudson Technologies Total Revenue

Hudson Technologies scored the biggest analyst estimates beat among its peers. The stock is down 12.6% since the results and currently trades at $8.55.

Is now the time to buy Hudson Technologies? Access our full analysis of the earnings results here, it's free.

Weakest Q1: Karat Packaging (NASDAQ:KRT)

Founded as Lollicup, Karat Packaging (NASDAQ: KRT) distributes and manufactures environmentally-friendly disposable foodservice packaging solutions.

Karat Packaging reported revenues of $95.61 million, down 0.2% year on year, falling short of analysts' expectations by 4.2%. It was a weak quarter for the company with revenue and EPS falling short of analysts' expectations. 

The stock is down 3.5% since the results and currently trades at $27.88.

Read our full analysis of Karat Packaging's results here.

Herc (NYSE:HRI)

Formerly a subsidiary of Hertz Corporation and with a logo that still bears some similarities to its former parent, Herc Holdings (NYSE:HRI) provides equipment rental and related services to a wide range of industries.

Herc reported revenues of $804 million, up 8.6% year on year, surpassing analysts' expectations by 2.4%. It was an exceptional quarter for the company, with an impressive beat of analysts' revenue and earnings estimates.

The stock is down 11.7% since the results and currently trades at $131.01.

Read our full, actionable report on Herc here, it's free.

Richardson Electronics (NASDAQ:RELL)

Founded in 1947, Richardson Electronics (NASDAQ:RELL) is a distributor of power grid and microwave tubes as well as consumables related to those products.

Richardson Electronics reported revenues of $52.38 million, down 25.6% year on year, falling short of analysts' expectations by 6.5%. It was a weaker quarter for the company with revenue falling below analysts' expectations.

Richardson Electronics had the slowest revenue growth among its peers. The stock is up 27.9% since the results and currently trades at $11.94.

Read our full, actionable report on Richardson Electronics here, it's free.

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