Equipment distribution company Alta Equipment Group (NYSE:ALTG) will be reporting results tomorrow after the bell. Here's what to look for.
Alta beat analysts' revenue expectations by 5% last quarter, reporting revenues of $441.6 million, up 5% year on year. It was a mixed quarter for the company, with a miss of analysts' earnings 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 grow 7.9% year on year to $505.5 million, slowing from the 15.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.19 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Alta has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 5.9% on average.
Looking at Alta's peers in the specialty equipment distributors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Richardson Electronics's revenues decreased 19.5% year on year, missing analysts' expectations by 1.3%, and SiteOne reported revenues up 4.4%, topping estimates by 1.8%. Richardson Electronics traded up 2.8% following the results while SiteOne was down 2.7%.
Read our full analysis of Richardson Electronics's results here and SiteOne's results here.
Investors in the specialty equipment distributors segment have had steady hands going into earnings, with share prices flat over the last month. Alta is up 10% during the same time and is heading into earnings with an average analyst price target of $19.2 (compared to the current share price of $8.99).
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