Alamo Group Q2 sales beat estimates on organic demand growth in industrial equipment

Alamo Group said second-quarter sales rose 7.6% to $450.70 million, beating analyst expectations of $437.47 million.

Second-quarter EPS was $2.55 versus the $2.74 consensus estimate, and net income was $30.90 million versus expectations of $33.63 million. EPS was nearly flat year over year.

The company said end-market conditions remain mixed, with some pressure in certain areas, according to CEO Robert Hureau.

Alamo Group said it is focusing on improving margins through operational execution and cost discipline.

The current average analyst rating on the shares is "buy," with 3 "strong buy" or "buy," 1 "hold," and no "sell" or "strong sell" ratings.

The average consensus recommendation for the heavy machinery & vehicles peer group is "buy."

Wall Street's median 12-month price target for Alamo Group Inc is $208.00, about 30.8% above its July 31 closing price of $159.08. The stock recently traded at 14 times the next 12-month earnings versus a P/E of 16 three months ago.

Industrial Equipment Division sales grew 12.8%, aided by the Petersen acquisition.

The company said the increase reflected organic demand growth and the contribution from Petersen.