Unpacking Q2 Earnings: Alta (NYSE:ALTG) In The Context Of Other Specialty Equipment Distributors Stocks

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Alta (NYSE:ALTG) and the best and worst performers in the specialty equipment distributors industry.

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 10 specialty equipment distributors stocks we track reported a weak Q2. As a group, revenues missed analysts’ consensus estimates by 1.7%.

Stocks--especially those trading at higher multiples--had a strong end of 2023, but this year has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and specialty equipment distributors stocks have had a rough stretch. On average, share prices are down 7.3% since the latest 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 $488.1 million, up 4.2% year on year. This print fell short of analysts’ expectations by 3.4%. Overall, it was a weak quarter for the company with a miss of analysts’ earnings estimates.

Unsurprisingly, the stock is down 18.9% since reporting and currently trades at $6.64.

Read our full report on Alta here, it’s free.

Best Q2: 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 $47.37 million, down 19.5% year on year, falling short of analysts’ expectations by 1.3%. However, it was still a decent quarter for the company with an impressive beat of analysts’ earnings estimates.

The market seems content with the results as the stock is up 4.7% since reporting. It currently trades at $11.59.

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

Slowest Q2: 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 $75.28 million, down 16.8% year on year, falling short of analysts’ expectations by 4.9%. It was a weak quarter for the company with full-year revenue guidance missing analysts’ expectations and a miss of analysts’ earnings estimates.

Hudson Technologies had the weakest full-year guidance update in the group. Interestingly, the stock is up 7.4% since the results and currently trades at $8.09.

Read our full analysis of Hudson Technologies’s results here.

SiteOne (NYSE:SITE)

Known for distributing John Deere tractors and LESCO turf care products, SiteOne Landscape Supply (NYSE:SITE) provides landscaping products and services to professionals, including irrigation, lighting, and nursery supplies.

SiteOne reported revenues of $1.41 billion, up 4.4% year on year, surpassing analysts’ expectations by 1.8%. Zooming out, it was a mixed quarter for the company with a decent beat of analysts’ operating margin estimates but underwhelming EBITDA guidance for the full year.

SiteOne achieved the biggest analyst estimates beat among its peers. The stock is down 6.1% since reporting and currently trades at $134.71.

Read our full, actionable report on SiteOne here, it’s free.

United Rentals (NYSE:URI)

Headquartered in Stamford, CT, United Rentals (NYSE:URI) provides equipment rental and related services to various industries including construction, industrial, and infrastructure.

United Rentals reported revenues of $3.77 billion, up 6.2% year on year, in line with analysts’ expectations. Zooming out, it was a mixed quarter for the company with an impressive beat of analysts’ operating margin estimates but a miss of analysts’ organic revenue estimates.

United Rentals pulled off the fastest revenue growth and highest full-year guidance raise among its peers. The stock is down 2.4% since reporting and currently trades at $698.36.

Read our full, actionable report on United Rentals here, it’s free.

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