Overview
Alta Q3 revenue fell 5.8% yr/yr, missing analyst expectations
Adjusted EPS missed analyst expectations, reflecting operational challenges
Product support revenues rose 1.1% yr/yr, showing resilience amid market challenges
Outlook
Alta expects Q4 demand for heavy earthmoving equipment to gain momentum
Alta projects 2025 Adjusted EBITDA between $168.0 mln and $172.0 mln
Alta anticipates entering a fleet replenishment cycle extending into 2026
Result Drivers
FLEET OPTIMIZATION - Revenue decline in Construction Equipment segment driven by strategic fleet optimization to align supply with demand for rental equipment
PRODUCT SUPPORT STRENGTH - Product support revenues increased 1.1% yr/yr, supported by strong technician productivity across major segments
COST SAVINGS - SG&A expenses decreased by $4.7 mln yr/yr due to cost-saving initiatives
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | $422.60 mln | $456.70 mln (5 Analysts) |
Q3 Adjusted EPS | Miss | -$0.35 | -$0.27 (3 Analysts) |
Q3 EPS | -$1.31 | ||
Q3 Net Income | -$42.30 mln | ||
Q3 Adjusted EBITDA | Miss | $41.70 mln | $46.10 mln (4 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the industrial machinery & equipment peer group is "buy"
Wall Street's median 12-month price target for Alta Equipment Group Inc is $10.00, about 39.3% above its November 5 closing price of $6.07
Press Release: ID:nGNXb6M9xW
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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.)