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The analysts might have been a bit too bullish on Alta Equipment Group Inc. (NYSE:ALTG), given that the company fell short of expectations when it released its quarterly results last week. It was a pretty negative result overall, with revenues of US$449m missing analyst predictions by 6.5%. Worse, the business reported a statutory loss of US$0.86 per share, much larger than the analysts had forecast prior to the result. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for Alta Equipment Group
Following last week's earnings report, Alta Equipment Group's five analysts are forecasting 2025 revenues to be US$1.94b, approximately in line with the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 41% to US$1.01. Before this earnings announcement, the analysts had been modelling revenues of US$1.98b and losses of US$0.70 per share in 2025. So it's pretty clear the analysts have mixed opinions on Alta Equipment Group after this update; revenues were downgraded and per-share losses expected to increase.
The consensus price target fell 18% to US$12.70, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Alta Equipment Group at US$20.00 per share, while the most bearish prices it at US$9.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Alta Equipment Group's past performance and to peers in the same industry. We would highlight that Alta Equipment Group's revenue growth is expected to slow, with the forecast 1.5% annualised growth rate until the end of 2025 being well below the historical 24% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.5% per year. Factoring in the forecast slowdown in growth, it seems obvious that Alta Equipment Group is also expected to grow slower than other industry participants.