Precision motion systems specialist Allient (NASDAQ:ALNT) will be reporting results tomorrow after the bell. Here’s what to expect.
Allient beat analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $125.2 million, down 13.8% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Is Allient a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Allient’s revenue to decline 15.1% year on year to $119.7 million, a reversal from the 7.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.25 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Allient has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Allient’s peers in the electronic components segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Advanced Energy delivered year-on-year revenue growth of 2.5%, beating analysts’ expectations by 5.5%, and Bel Fuse reported revenues up 7%, topping estimates by 18.6%. Advanced Energy traded up 11% following the results while Bel Fuse’s stock price was unchanged.
Read our full analysis of Advanced Energy’s results here and Bel Fuse’s results here.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the electronic components stocks have shown solid performance, the group has generally underperformed, with share prices down 8.7% on average over the last month. Allient is down 3.8% during the same time and is heading into earnings with an average analyst price target of $31 (compared to the current share price of $23.50).
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