Alta Equipment Group reports Q2 adjusted EPS 1c, consensus (7c)

Reports Q2 revenue $488.1M, consensus $505.47M. The company said, “Our business rebounded well this quarter from the seasonally-challenged first quarter and in the face of a moderating market environment for new equipment sales. Notably, our product support business performed well in this moderating environment as we continued to achieve organic growth on increased field population with revenues increasing to a record of $144.2 million, an increase of $13.2 million from a year ago. Additionally, our Material Handling segment also continued on its steady path of profitable growth as we progressively execute on a solid sales backlog and gain market share in strategic regions and product categories throughout our footprint. We also saw a rebound in our Master Distribution segment as revenue in the quarter was $16.7 million versus $12.8 million in the first quarter. While we benefited from a return to normal seasonality and a strong quarter from our Material Handling segment and our product support business lines, market unit volumes in our Construction Equipment segment remain under pressure due to uncertainty regarding interest rates and the election outcome, especially affecting small to mid-size contractors. Additionally, our construction equipment sales margins continued to be impacted by the oversupply of competitive new equipment on the market in the quarter.”