Key Takeaways Screen highlights five stocks showing strong relative price strength amid steady market gains.PARR shows rising 2025 earnings estimates and a 146.2% share gain over the past year.SNDK posts sharp estimate boosts for fiscal 2026 and a 422.9% share surge in the past year.U.S. stocks have held up impressively despite pockets of volatility, extending a strong upswing that began well over a year ago. Even with occasional pullbacks, major indexes remain quite close to record levels, supported by res ...

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates is challenging due to inherent risks and volatility [1] Group 1: Company Overview - Allient (ALNT) is currently highlighted as a recommended growth stock by the Zacks Growth Style Score system, which evaluates a company's growth prospects beyond traditional metrics [2] - The company has a favorable Growth Score and a top Zacks Rank, indicating strong potential for performance [2] Group 2: Earnings Growth - Allient's historical EPS growth rate stands at 14.1%, but the projected EPS growth for this year is significantly higher at 34%, surpassing the industry average of 20.2% [5] Group 3: Asset Utilization - Allient's asset utilization ratio (sales-to-total-assets ratio) is 0.91, indicating that the company generates $0.91 in sales for every dollar in assets, which is above the industry average of 0.72 [6] Group 4: Sales Growth - The company's sales are expected to grow by 1.6% this year, while the industry average is stagnant at 0% [7] Group 5: Earnings Estimate Revisions - The current-year earnings estimates for Allient have been revised upward, with the Zacks Consensus Estimate increasing by 4% over the past month, indicating positive momentum [9] Group 6: Conclusion - Allient has achieved a Zacks Rank 1 and a Growth Score of B, suggesting it is a strong candidate for growth investors and has the potential to outperform [11]

Precision motion systems specialist Allient (NASDAQ:ALNT) reported Q3 CY2025 results topping the market’s revenue expectations , with sales up 10.8% year on year to $138.7 million. Its non-GAAP profit of $0.59 per share was 20.4% above analysts’ consensus estimates. Is now the time to buy ALNT? Find out in our full research report (it’s free for active Edge members). Allient (ALNT) Q3 CY2025 Highlights: Revenue: $138.7 million vs analyst estimates of $134.2 million (10.8% year-on-year growth, 3.4% beat ...

Core Insights - Allient's shares dropped 11.2% following the cancellation of the M10 Booker Tank program by the U.S. Army, which raised concerns about future business in its Aerospace & Defense division [1] - The company reported a book-to-bill ratio of 0.96, indicating that it received fewer orders than it filled, suggesting a potential slowdown in demand [1] - Despite achieving double-digit revenue growth and a record gross margin, the loss of the defense contract overshadowed these positive results [1] Market Reaction - Allient's stock has shown significant volatility, with 21 moves greater than 5% in the past year, indicating that the recent news has greatly affected market perception [3] - The previous notable stock movement occurred when shares gained 6% after the announcement of the Pyxmos™ Servo Drive, highlighting the company's focus on innovation and performance in motion systems [4] Financial Performance - Year-to-date, Allient's stock is up 104%, but it is currently trading 11.8% below its 52-week high of $56.69 [5] - An investment of $1,000 in Allient's shares five years ago would now be worth $1,873, reflecting strong long-term growth despite recent volatility [5]

Financial Data and Key Metrics Changes - Q3 revenue increased by $13.5 million year-over-year, reaching $138.7 million, driven by strong industrial market demand and solid performance in core end markets [7][8] - Gross profit reached $46.2 million, with gross margin expanding to a record 33.3%, up 190 basis points year-over-year [11][12] - Net income more than tripled year-over-year to $6.5 million, or $0.39 per diluted share, with adjusted net income at $9.9 million, or $0.59 per share [13] - Year-to-date operating cash flow was $43.1 million, up 46% from last year [14][15] - Debt declined by $12 million sequentially in Q3, bringing total year-to-date debt reduction to nearly $34 million, with a leverage ratio improved to 2.1 times [16] Business Line Data and Key Metrics Changes - Industrial market revenue advanced 20%, led by strong demand for power quality solutions in data centers and improving industrial automation trends [8][10] - Medical revenue grew 6%, driven by surgical instruments, while vehicle sales were up 6%, supported by commercial automotive and construction [9][10] - Aerospace and defense revenue increased by 2%, with scheduled defense and space program deliveries continuing [9] - Distribution channel sales were down 6%, representing a smaller share of overall mix [9] Market Data and Key Metrics Changes - Sales to U.S. customers accounted for 57% of Q3 revenue, with Europe, Canada, and Asia-Pacific representing the balance [7] - The industrial market is the largest vertical at 48% of total revenue, with aerospace and defense at 15% and medical also at 15% [10] - Vehicle revenue represented 17% of total revenue, down from 22% in the prior year, primarily due to reduced demand in power sports and select truck applications [10] Company Strategy and Development Direction - The company is focused on advancing strategic initiatives that enhance long-term value, driving further margin expansion, and maintaining working capital discipline [18][19] - The "Simplify to Accelerate Now" program continues to drive cost savings and operational efficiency, with $10 million in annualized savings achieved in 2024 and an additional $6-$7 million expected in 2025 [12][19] - The company is positioning itself towards markets with strong secular growth drivers, including electrification, automation, energy efficiency, and digital infrastructure [19] Management's Comments on Operating Environment and Future Outlook - Management noted that the global industrial environment is gradually improving but remains uneven, with ongoing policy and tariff risks [17][18] - The company is encouraged by the quality and margin potential of new orders in the backlog, despite the cancellation of the M10 Booker tank program [17][24] - Management expressed confidence in the operational financial momentum generated in Q3 as a strong foundation for future growth [19] Other Important Information - The company recorded $800,000 in realignment costs during Q3 to support transformation efforts [12] - Temporary inventory build impacted free cash flow by approximately $5 million, largely tied to rare earth magnets [14] Q&A Session Summary Question: Quality and visibility of current backlog - Management indicated that the backlog quality is strong, particularly in power quality and defense areas, despite a cancellation impacting the book-to-bill ratio [23][24] Question: Progress on "Simplify to Accelerate Now" initiatives - Management confirmed that significant cost savings have been validated, with ongoing efforts to optimize production and sourcing strategies [25][26] Question: Demand in the data center market - Management highlighted strong demand for power quality equipment in data centers, with facility expansions expected to come online in the second quarter of next year [37] Question: Impact of M10 program cancellation - Management confirmed no write-downs will be necessary due to the cancellation, with full recovery of costs expected [52] Question: Vehicle market exposure - Management clarified that commercial automotive remains below 10% of annual revenues, with a focus on diversifying into other vehicle markets [60][61]

Financial Performance Highlights - Revenue reached $138.7 million, showing an increase of 11% year-over-year[5] - Net income increased by 15% quarter-over-quarter and 208% year-over-year, reaching $6.5 million[5] - Gross margin improved to 33.3%, a 10 basis points increase quarter-over-quarter and a 190 basis points increase year-over-year[5] - Operating margin was 8.8%, up 40 basis points quarter-over-quarter and 350 basis points year-over-year[5] - Year-to-date cash from operations increased by 46% year-over-year to $43.1 million[5] Cost Reduction and Efficiency Initiatives - Achieved $10 million in annualized savings in 2024[7] - Aims to reduce annualized costs by another $6 to $7 million in 2025[7] - Recognized $3.5 million in restructuring and related charges year-to-date in 2025[7] Debt and Leverage - Net debt stood at $150.8 million, a reduction of $37.3 million year-to-date[5] - The leverage ratio is 2.10x[32]

Financial Performance - Revenues for the three months ended September 30, 2025, increased by 11% to $138,743,000 compared to $125,213,000 in 2024, driven by a 9.0% volume increase and a 1.8% foreign currency impact [105]. - Gross profit rose to $46,181,000, an 18% increase from $39,264,000 in the same period last year, with gross margin improving to 33.3% from 31.4% [107]. - Net income for the three months ended September 30, 2025, was $6,477,000, representing a 208% increase compared to $2,101,000 in 2024 [105]. - Net income for the nine months ended September 30, 2025, increased to $15,651, a 54% increase from $10,153 in 2024 [119]. - Adjusted net income for the nine months ended September 30, 2025, was $27,003, compared to $19,471 in 2024, reflecting a 39% increase [131]. - Revenues for the nine months ended September 30, 2025, were $411,124, a 1% increase from $407,958 in 2024 [119]. - Gross profit increased to $135,289 for the nine months ended September 30, 2025, up 6% from $127,317 in 2024, with gross margin percentage rising to 32.9% from 31.2% [122]. - EBITDA for the nine months ended September 30, 2025, was $49,777, compared to $42,438 in 2024, representing a 17% increase [132]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $57,838, up from $48,404 in 2024, indicating a 19% increase [132]. - Order bookings increased by 12% for the nine months ended September 30, 2025, totaling $405,774 compared to $362,131 in 2024 [119]. Cost Management - The effective tax rate for the three months ended September 30, 2025, was 22.2%, slightly down from 22.6% in 2024 [116]. - The company expects to achieve an additional $6 to $7 million in annualized cost savings from its Simplify to Accelerate NOW strategy, with one-time costs estimated at $4 to $5 million [101]. - Engineering and development expenses increased by 7% to $9,687,000 in the three months ended September 30, 2025, reflecting higher incentive compensation [112]. - Selling expenses decreased by 2% to $6,217,000, representing 4% of revenues in 2025 compared to 5% in 2024 [108]. - Selling expenses decreased by 5% during the nine months ended September 30, 2025, as part of cost reduction actions [123]. Strategic Initiatives - The company is restructuring its operations, including transferring assembly operations from Dothan, Alabama, to enhance operational efficiency [100]. - The company has refined its strategy to focus on three technology pillars: Motion, Controls, and Power, and rebranded as Allient Inc. [98]. Cash Flow and Capital Management - Cash and cash equivalents increased by $3,374,000 to $39,476,000 as of September 30, 2025, compared to December 31, 2024 [147]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $43,116,000, an increase of $13,658,000 from $29,458,000 in 2024 [148]. - Capital expenditures for the full year 2025 are expected to be between $6,500,000 and $8,500,000 [150]. - The Company declared dividends of $0.09 per share during each of the nine months ended September 30, 2025, and 2024 [155]. Foreign Currency and Interest Rate Impact - The Company reported a foreign currency loss of $1,974,000 for the nine months ended September 30, 2025, compared to a loss of $380,000 in 2024 [159]. - A hypothetical 10% change in the value of the U.S. dollar would have impacted sales by approximately $4,753,000 for the nine months ended September 30, 2025 [157]. - The Series A Notes will bear interest at 6.46% from October 1, 2024, through September 30, 2025 [160]. - As of September 30, 2025, the company had $134,963 outstanding under the Revolving Facility, with $90,000 currently being hedged [164]. - The company entered into an interest rate swap with a notional amount of $40,000 in March 2022, maturing in December 2026 [163]. - An additional interest rate swap with a notional amount of $50,000 was entered into in September 2024, maturing in September 2027 [163]. - A hypothetical one percentage point change in the Base Rate on $44,963 of unhedged floating rate debt would impact interest expense by approximately $450 for the nine months ended September 30, 2025 [164].

Core Viewpoint - The market anticipates Allient (ALNT) will report a year-over-year increase in earnings driven by higher revenues for the quarter ending September 2025, with a consensus EPS estimate of $0.50, reflecting a +61.3% change, and revenues expected to reach $134.68 million, up 7.6% from the previous year [1][3]. Earnings Expectations - The upcoming earnings report is scheduled for November 5, and the stock may rise if the actual results exceed expectations, while a miss could lead to a decline [2]. - The consensus EPS estimate has been revised 5.22% higher in the last 30 days, indicating a positive reassessment by analysts [4]. Earnings Surprise Prediction - Allient's Most Accurate Estimate is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +8.00%, suggesting a strong likelihood of beating the consensus EPS estimate [12]. - The company has a Zacks Rank of 3, which indicates a neutral outlook, but the positive Earnings ESP enhances the probability of an earnings beat [12]. Historical Performance - In the last reported quarter, Allient exceeded the expected EPS of $0.48 by delivering $0.57, resulting in a surprise of +18.75% [13]. - Over the past four quarters, Allient has consistently beaten consensus EPS estimates [14]. Industry Comparison - nVent Electric (NVT), another player in the Zacks Electronics - Miscellaneous Components industry, is expected to report an EPS of $0.88 for the same quarter, reflecting a +4.8% year-over-year change, with revenues projected at $1.01 billion, up 7.2% [18][19]. - nVent has an Earnings ESP of +1.30% and a Zacks Rank of 2, indicating a strong likelihood of surpassing the consensus EPS estimate [20].

Core Insights - Allient (ALNT) is positioned to continue its earnings-beat streak, particularly in the upcoming earnings report [1] - The company has a history of exceeding earnings estimates, with an average surprise of 29.07% over the last two quarters [1][5] Earnings Performance - In the most recent quarter, Allient reported earnings of $0.57 per share, surpassing the expected $0.48 per share, resulting in an 18.75% surprise [2] - For the previous quarter, the company reported $0.46 per share against an expectation of $0.33 per share, leading to a surprise of 39.39% [2] Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for Allient, indicated by a positive Earnings ESP (Expected Surprise Prediction) [5] - The current Earnings ESP for Allient is +8.00%, suggesting analysts have recently become more optimistic about the company's earnings prospects [8] Zacks Rank and Predictive Power - Allient holds a Zacks Rank of 3 (Hold), which, when combined with a positive Earnings ESP, indicates a high likelihood of another earnings beat [8] - Research shows that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [6] Importance of Earnings ESP - The Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7] - A negative Earnings ESP reduces predictive power but does not necessarily indicate an earnings miss [9]

Core Viewpoint - Allient Inc. has announced a conference call and webcast to discuss its financial results for the third quarter of 2025, indicating a focus on transparency and communication with stakeholders [1] Financial Results - The conference call will provide insights into the company's financial performance, including revenue, profit margins, and other key financial metrics for Q3 2025 [1] Investor Engagement - The scheduled webcast aims to enhance investor engagement by allowing stakeholders to access detailed financial information and management commentary [1]