Let’s dig into the relative performance of Alta (NYSE: ALTG) and its peers as we unravel the now-completed Q1 specialty equipment distributors earnings season.
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 satisfactory Q1. As a group, revenues missed analysts’ consensus estimates by 0.8% while next quarter’s revenue guidance was 2.4% above.
Luckily, specialty equipment distributors stocks have performed well with share prices up 15.6% on average 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 $423 million, down 4.2% year on year. This print fell short of analysts’ expectations by 2.3%, but it was still a satisfactory quarter for the company with a solid beat of analysts’ EBITDA estimates.
Interestingly, the stock is up 40.6% since reporting and currently trades at $6.37.
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 $55.34 million, down 15.2% year on year, outperforming analysts’ expectations by 6%. The business had an incredible quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Hudson Technologies pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 20.7% since reporting. It currently trades at $8.10.
Is now the time to buy Hudson Technologies? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: H&E Equipment Services (NASDAQ: HEES)
Founded after recognizing a growth trend along the Mississippi River and opportunities developing in the earthmoving and construction equipment business, H&E (NASDAQ: HEES) offers machinery for companies to purchase or rent.
H&E Equipment Services reported revenues of $319.5 million, down 14% year on year, falling short of analysts’ expectations by 11.9%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
H&E Equipment Services delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 4.6% since the results and currently trades at $94.50.
Read our full analysis of H&E Equipment Services’s results here.
Custom Truck One Source (NYSE: CTOS)
Inspired by a family gas station, Custom Truck One Source (NYSE: CTOS) is a distributor of trucks and heavy equipment.
Custom Truck One Source reported revenues of $422.2 million, up 2.7% year on year. This number missed analysts’ expectations by 3%. Overall, it was a slower quarter as it also produced a significant miss of analysts’ adjusted operating income estimates.
Custom Truck One Source delivered the highest full-year guidance raise among its peers. The stock is up 26.4% since reporting and currently trades at $5.07.
Read our full, actionable report on Custom Truck One Source here, it’s free.
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 $103.6 million, up 8.4% year on year. This print topped analysts’ expectations by 1.5%. It was a very strong quarter as it also recorded a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ EPS estimates.
Karat Packaging scored the fastest revenue growth among its peers. The stock is flat since reporting and currently trades at $27.24.
Read our full, actionable report on Karat Packaging here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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