Alliance Laundry (NYSE:ALH) Announces Quarterly Earnings Results, Beats Estimates By $0.06 EPS

Alliance Laundry (NYSE:ALH – Get Free Report) issued its earnings results on Tuesday. The company reported $0.38 EPS for the quarter, topping the consensus estimate of $0.32 by $0.06, Zacks reports. Alliance Laundry had a return on equity of 81.92% and a net margin of 10.08%. The firm had revenue of $460.92 million during the quarter.

Here are the key takeaways from Alliance Laundry’s conference call:

  • Third-quarter revenue rose 5% to $461 million, while adjusted EBITDA increased 14% to $127 million and margin expanded 217 basis points to 27.5%. Results included a $5 million tariff refund; excluding it, adjusted EBITDA still grew about 10%.
  • Alliance raised its full-year adjusted EBITDA growth outlook to approximately 10%, the high end of its prior range, while maintaining revenue growth guidance of 6%–7%. The company expects continued cost pressure in Q4, particularly from steel, and says tariff refunds received through Q3 will not recur in that quarter.
  • North America revenue grew 8%, led by Commercial In-Home and On-Premise Laundry, with segment adjusted EBITDA up 21%. Vended results were affected by permitting and construction delays, which management characterized as timing-related, with underlying demand remaining strong.
  • International revenue declined 1%, partly due to foreign currency translation, while adjusted EBITDA rose and margin improved. Regional results varied: Latin America was solid, Europe steady, and Asia Pacific softer due to project timing.
  • Alliance paid down $45 million of debt in the quarter and repurchased $75 million of shares; net leverage ended Q3 at 2.25 times. Management says deleveraging remains a priority, while future capital allocation could also include business investment or further buybacks.

Alliance Laundry Price Performance

ALH stock traded up $0.14 during trading on Tuesday, hitting $24.18. The company had a trading volume of 510,667 shares, compared to its average volume of 969,251. The company has a fifty day moving average price of $21.71 and a two-hundred day moving average price of $23.50. The company has a current ratio of 1.43, a quick ratio of 1.14 and a debt-to-equity ratio of 3.35. The company has a market cap of $4.81 billion and a P/E ratio of 26.63. Alliance Laundry has a fifty-two week low of $18.64 and a fifty-two week high of $28.23.

Insiders Place Their Bets

In other Alliance Laundry news, COO Gommaar Vleugels sold 75,000 shares of the stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $21.05, for a total transaction of $1,578,750.00. Following the completion of the transaction, the chief operating officer directly owned 374,563 shares in the company, valued at $7,884,551.15. This represents a 16.68% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 7.60% of the stock is owned by company insiders.

Key Stories Impacting Alliance Laundry

Here are the key news stories impacting Alliance Laundry this week:

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on the stock. Weiss Ratings raised shares of Alliance Laundry from a “sell (d+)” rating to a “hold (c-)” rating in a report on Wednesday, November 4th. Zacks Research raised shares of Alliance Laundry from a “hold” rating to a “strong-buy” rating in a report on Monday, October 26th. JPMorgan Chase & Co. lifted their target price on shares of Alliance Laundry from $31.00 to $32.00 and gave the company an “overweight” rating in a research report on Friday, August 14th. Robert W. Baird lifted their target price on shares of Alliance Laundry from $32.00 to $34.00 and gave the company an “outperform” rating in a research report on Friday, August 14th. Finally, Citigroup lowered their target price on shares of Alliance Laundry from $31.00 to $26.00 and set a “buy” rating on the stock in a research note on Monday, October 12th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, Alliance Laundry presently has an average rating of “Moderate Buy” and an average price target of $30.20.

Check Out Our Latest Research Report on ALH

About Alliance Laundry

(Get Free Report)

Alliance Laundry Holdings, Inc. designs, manufactures and sells commercial laundry equipment. Its products include washers, dryers and related laundry systems for laundromats and customers in sectors such as hospitality, healthcare, multifamily housing and other institutional markets. The company serves customers worldwide through brands including Speed Queen, UniMac, Huebsch, Primus and IPSO. Its offerings include equipment for self-service and on-premises laundry operations, along with related parts and services.

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