Financial Performance - Revenues for Q1 2025 were $132.8 million, a decrease of 9% from $146.7 million in Q1 2024, primarily due to declines in the Vehicle and Industrial markets [103]. - Gross profit decreased to $42.8 million in Q1 2025 from $47.4 million in Q1 2024, with gross margin slightly declining to 32.2% [105]. - Net income for Q1 2025 was $3.6 million, down 48% from $6.9 million in Q1 2024, reflecting lower sales volume [114]. - Operating income fell to $8.8 million in Q1 2025, a 27% decrease from $12.1 million in Q1 2024 [103]. - Adjusted net income for Q1 2025 was $7.6 million, down from $9.5 million in Q1 2024, with adjusted diluted earnings per share at $0.46 compared to $0.58 [114]. - EBITDA for the three months ended March 31, 2025, was $14,376,000, down from $18,594,000 in 2024, while Adjusted EBITDA was $17,472,000 compared to $20,042,000 in 2024 [123]. - Adjusted net income for the three months ended March 31, 2025, was $7,593,000, resulting in Adjusted diluted earnings per share of $0.46, down from $9,546,000 and $0.58 in 2024 [123]. Bookings and Backlog - Bookings increased by 13% in Q1 2025, totaling $137.6 million compared to $122.1 million in Q1 2024, driven by a 14.1% increase in volume [104]. - The backlog decreased to $237.3 million in Q1 2025, down 8% from $258.1 million in Q1 2024 [103]. Cost Management - The company expects to achieve $6 to $7 million in annualized cost savings in 2025 as part of its Simplify to Accelerate NOW strategy [100]. - Engineering and development expenses decreased by 14% in Q1 2025 compared to Q1 2024, reflecting cost reduction actions [109]. Cash Flow and Investments - Cash and cash equivalents increased by $11,651,000 to $47,753,000 as of March 31, 2025, from $36,102,000 at December 31, 2024 [124]. - Net cash provided by operating activities was $13,928,000 for the three months ended March 31, 2025, an increase of $4,749,000 compared to $9,179,000 in 2024 [125]. - The decrease in cash used in investing activities was primarily due to a reduction in cash paid for acquisitions, totaling $1,060,000 in Q1 2025 compared to $28,500,000 in Q1 2024 [129]. Foreign Currency and Interest Rates - A hypothetical 10% change in the value of the U.S. dollar would have impacted sales by approximately $9,509,000 for the three months ended March 31, 2025 [136]. - As of March 31, 2025, the company had foreign currency contracts with notional amounts of $31,507, resulting in a loss of $124 on these contracts for the three months ended March 31, 2025 [138]. - Net foreign currency transaction losses amounted to $677 for the three months ended March 31, 2025, compared to gains of $238 for the same period in 2024 [138]. - The Series A Notes under the 2024 Note Payable Agreement bear interest at a fixed rate of 5.96% and will mature on March 21, 2031 [139]. - Interest rates on the Credit Facility are based on Term SOFR plus a margin of 2.50% as of March 31, 2025 [140]. - The company entered into an interest rate swap with a notional amount of $40,000 maturing in December 2026 and an additional swap of $50,000 maturing in September 2027 [140]. - As of March 31, 2025, the company had $166,962 outstanding under the Revolving Facility, with $90,000 currently being hedged [141]. - A hypothetical one percentage point change in the Base Rate on the $76,962 of unhedged floating rate debt would impact interest expense by approximately $770 for the three months ended March 31, 2025 [141]. Dividends - The Company declared dividends of $0.03 per share for both the three months ended March 31, 2025, and 2024 [134].

Allient (ALNT) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Since a changing earn ...

Financial Data and Key Metrics Changes - In Q4 2024, the company reported revenue of $122 million, a decrease from the same period last year, with a gross margin of 31.5%, showing a sequential improvement despite soft volume [9][19][27] - For the full year, revenue totaled $530 million, reflecting anticipated demand softness due to inventory rebalancing and customer utilization of excess inventory [10][19] - Operating cash flow for the year was nearly $42 million, with total debt reaching approximately $240 million following the acquisition of SNC [10][39] Business Line Data and Key Metrics Changes - Aerospace and defense sales increased by 20% in Q4 due to specific defense and space program timing, while medical market revenue rose by 5% driven by demand for surgical instruments [20][21] - Vehicle market sales decreased by 46%, primarily due to reduced demand for powersports, and industrial market sales declined by 11% despite strong performance in power quality [21][22] - The industrial sector remained the largest market, contributing 47% of trailing twelve-month sales, driven by strong demand in power quality and semiconductor equipment [24] Market Data and Key Metrics Changes - The geographic sales mix shifted, with US customers accounting for 54% of total sales, down from 59% in the previous year [19] - The company noted challenges in Europe, particularly in Germany, with expectations of continued softness into midyear [58] - The data center expansion is expected to provide strong tailwinds, with significant growth anticipated in this area [60][68] Company Strategy and Development Direction - The company is focused on operational efficiencies and long-term growth, with initiatives like "Simplify to Accelerate Now" expected to deliver $6 to $7 million in annual savings in 2025 [12][14] - The Dothan facility's expansion aims to enhance machining capabilities, aligning with key market needs [15][16] - The company is actively pursuing opportunities in the defense sector through its newly formed Allient Defense Solutions unit [46] Management's Comments on Operating Environment and Future Outlook - Management anticipates a moderated pace of orders across most markets through the first half of 2025, with expectations for greater stability in order flow as customer inventory adjustments near completion [48] - The company remains optimistic about long-term operational improvements despite near-term inefficiencies during transitions [49][50] - Management emphasized the importance of aligning operations with customer needs to enhance responsiveness and drive growth [62] Other Important Information - The company reported a net income of $3 million for Q4, translating to earnings per diluted share of $0.18, with adjusted net income of $5.2 million or $0.31 per diluted share [32] - Total debt at year-end was $224 million, with a commitment to deleverage following the SNC acquisition [39][41] - The company entered into a new three-year interest rate swap to hedge $50 million of debt, providing stability amidst rate fluctuations [40] Q&A Session Summary Question: Insights on geographical and end-market performance - Management noted that North America is strengthening, with expectations for the industrial sector to return to normal growth rates, while Europe remains soft [57][58] Question: Potential for growth in Europe - Management indicated a "wait and see" approach regarding Europe, with ongoing operational efficiencies and new product development being key focus areas [64][65] Question: Data center market exposure and growth expectations - Management highlighted unique high-power solutions that provide a competitive edge, with significant growth in the data center market expected to continue [68][69] Question: Stability in medical and powersports businesses - Management acknowledged stabilization in the medical business around $20 million, with growth opportunities in higher-end applications, while powersports face challenges due to market dynamics [75][84] Question: Inventory normalization and cadence of improvement - Management confirmed that inventory levels are expected to normalize later in the year, with gradual improvements anticipated [102][104] Question: Dothan restructuring costs and financial reporting - Management stated that restructuring costs will not be broken out individually but will be included in the financials under business development [106][112] Question: Interest rate for the new swap - Management confirmed the interest rate for the swap is approximately 3.2% [115]

Financial Data and Key Metrics Changes - In Q4 2024, the company reported revenue of $122 million, with a gross margin of 31.5%, showing a sequential improvement despite soft volume [9][19] - For the full year, revenue totaled $530 million, reflecting anticipated demand softness due to inventory rebalancing [10] - Operating cash flow reached nearly $42 million, with total debt at approximately $240 million following the acquisition of SNC [10][39] - Net income for the quarter was $3 million, translating to earnings per diluted share of $0.18, while adjusted net income was $5.2 million or $0.31 per diluted share [32] Business Line Data and Key Metrics Changes - Aerospace and defense sales increased by 20%, while medical market revenue rose by 5% [20][21] - Vehicle market sales decreased by 46%, primarily due to reduced demand for powersports [21] - Industrial market sales declined by 11%, despite strong performance in power quality sales [22] Market Data and Key Metrics Changes - US customers accounted for 54% of total sales, down from 59% in the previous year [19] - The industrial sector remained the largest market, contributing 47% of trailing twelve-month sales, driven by strong demand in power quality [24] - The distribution channel showed modest growth, representing 5% of total sales over the trailing twelve-month period [26] Company Strategy and Development Direction - The company is focused on operational efficiencies and positioning for long-term growth through initiatives like "Simplify to Accelerate Now," which delivered $10 million in annualized savings [12][13] - The Dothan facility is expanding machining capabilities to support strategic goals, with expected benefits by late 2025 [14][15] - The company is actively pursuing opportunities in the defense sector and has formed a new business unit to capitalize on these prospects [46] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in key industrial and vehicle markets but emphasized resilience and commitment to execution [8] - The outlook for 2025 anticipates a moderated pace of orders across most markets, with expected strength in data center expansion [48] - Management remains optimistic about long-term operational improvements despite near-term inefficiencies during transitions [49] Other Important Information - The company is committed to reducing debt, having lowered total debt by $16 million over the year [11][39] - Cash and cash equivalents increased by 13% to $36.1 million, reinforcing financial flexibility [36] - The effective tax rate for the quarter was 22.2%, with expectations for the full year 2025 to range between 21% and 23% [33] Q&A Session Summary Question: Insights on geographical and end-market performance - Management noted that North America is strengthening, while Europe faces ongoing softness, particularly in Germany [57][58] Question: Potential for growth in Europe - Management indicated a "wait and see" approach regarding potential growth in Europe due to ongoing uncertainties [64][65] Question: Data center market exposure and growth expectations - Management highlighted significant growth in the data center market, with expectations for continued opportunities, albeit at a slower pace than previous years [68][69] Question: Stability in medical and powersports businesses - Management acknowledged stabilization in the medical business but noted challenges in the powersports market, which remains flat [75][84] Question: Inventory normalization and its impact - Management confirmed that inventory levels are expected to normalize later in the year, with gradual improvements anticipated [102][103] Question: Dothan restructuring costs and reporting - Management stated that restructuring costs will be included in the financials but not broken out individually [108][112] Question: Interest rate for the new swap - Management confirmed the interest rate for the swap is approximately 3.2% [115]

Company Performance - Allient (ALNT) reported quarterly earnings of $0.31 per share, exceeding the Zacks Consensus Estimate of $0.26 per share, but down from $0.55 per share a year ago, representing an earnings surprise of 19.23% [1] - The company posted revenues of $122.01 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.98%, but down from $141 million year-over-year [2] - Over the last four quarters, Allient has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Outlook - Allient shares have declined approximately 4.4% since the beginning of the year, compared to a decline of 1.8% for the S&P 500 [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.33 on revenues of $125.45 million, and for the current fiscal year, it is $1.83 on revenues of $522.49 million [7] Industry Context - The Electronics - Miscellaneous Components industry, to which Allient belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Allient's stock performance [5][6]

Revenue and Income - Revenue for 2024 was $529,968, a decrease of 8.4% from $578,634 in 2023, with the Industrial and Vehicle markets experiencing declines[143]. - Net income for 2024 was $13,166, or $0.79 per diluted share, a 45% decrease compared to $24,097, or $1.48 per diluted share in 2023[143]. - Revenues for 2024 decreased to $529,968, down 8% from $578,634 in 2023, primarily due to a volume decrease of 8% and elevated inventory levels[173]. - Adjusted net income for 2024 was $24,679, down from $37,458 in 2023, with adjusted diluted earnings per share decreasing to $1.49 from $2.30[183]. - The company reported a comprehensive income of $158,000 for 2024, a significant drop from $25,885,000 in 2023[226]. - Operating income fell by 29% to $30,038 in 2024, compared to $42,314 in 2023[173]. - The income before income taxes for the year ended December 31, 2024, was $16,858,000, a decrease from $29,700,000 in 2023[324]. Bookings and Backlog - Bookings fell to $480,031 in 2024, an 8% decrease from $520,275 in 2023, with backlog decreasing by 17% to $230,788[143]. - Bookings for 2024 were $480,031, an 8% decrease from $520,275 in 2023, with backlog also declining by 16% to $230,788[173]. - The company's backlog as of December 31, 2024, was $230,788, with an expectation to recognize 85% of these performance obligations within the next twelve months[288]. Expenses and Costs - Gross profit decreased by 10% to $165,691 in 2024, resulting in a gross margin of 31.3%, down from 31.7% in 2023[143]. - General and administrative expenses decreased by 5% to $55,669 in 2024, reflecting cost reduction actions[177]. - Cash paid for interest in 2024 was $12,059 thousand, a slight decrease from $12,200 thousand in 2023, while income taxes paid decreased to $7,804 thousand from $12,687 thousand[255]. - The total operating lease expense for 2024 was $8,171,000, compared to $8,769,000 in 2023, reflecting a decrease of approximately 6.8%[337]. Dividends - The company declared dividends of $0.12 per share in 2024, with a payout ratio of 15% compared to 8% in 2023[144]. - The company declared dividends of $0.12 per share in 2024, up from $0.115 per share in 2023[202]. - For the years ended December 31, 2024, 2023, and 2022, total dividends paid were $1,981,000, $1,826,000, and $1,536,000, respectively, with per share dividends of $0.12, $0.115, and $0.10[305]. Assets and Liabilities - As of December 31, 2024, the company recorded $111,517 in inventory, representing approximately 19% of total assets[165]. - Goodwill recorded on the balance sheet as of December 31, 2024, was $131,789, representing about 23% of total assets[168]. - Total current assets decreased to $237,580,000 in 2024 from $248,151,000 in 2023, primarily due to a reduction in trade receivables and inventories[225]. - Total liabilities decreased to $310,927,000 in 2024 from $345,967,000 in 2023, with a significant reduction in current liabilities[225]. - The company’s long-term debt increased to $224,177,000 in 2024 from $218,402,000 in 2023, indicating a slight rise in leverage[225]. Cash Flow - Net cash provided by operating activities decreased by $3,188 to $41,850 in 2024 from $45,038 in 2023[193]. - Cash used in investing activities increased by $12,307 to $(34,914) in 2024, primarily due to a $20,000 cash payment for the acquisition of SNC[195]. - Cash used in financing activities decreased by $20,474 to $(843) in 2024, reflecting $20,000 borrowed from the Amended Revolving Facility for the SNC acquisition[196]. - Cash and cash equivalents increased to $36,102,000 in 2024 from $31,901,000 in 2023, indicating improved liquidity[225]. Acquisitions - The company acquired SNC Manufacturing Co. for a purchase price of $20,000 thousand, with SNC contributing $38,045 thousand in revenue and $3,066 thousand in net income during 2024[271][272]. - The company acquired 100% of Sierramotion Inc. for a total purchase price of $8,400, which includes $2,000 of contingent consideration[277]. - The company incurred $313 thousand in transaction costs related to the acquisition of SNC, which are included in business development expenses[271]. Financial Instruments and Risk Management - The Company holds notional amounts of $90,000,000 in interest rate derivatives as of December 31, 2024, to manage exposure to interest rate movements[319]. - The Company had foreign currency contracts with notional amounts of $30,945,000 and $22,193,000 at December 31, 2024, and 2023, respectively, resulting in losses of $1,749,000 and $281,000 for the years ended December 31, 2024, and 2023[318]. Taxation - The effective tax rate increased to 21.9% in 2024 from 18.9% in 2023, influenced by various tax provisions and credits[181]. - The total income tax provision for 2024 was $3,692,000, compared to $5,603,000 in 2023, reflecting a provision rate of 21.9%[324]. - Noncurrent deferred tax assets increased to $22,951,000 in 2024 from $20,877,000 in 2023, primarily due to research and development costs[325]. Future Outlook - The company plans to expand machining capabilities at its Dothan, Alabama facility, expected to yield initial benefits by the end of 2025[154]. - The company plans to focus on new product development and market expansion strategies to drive future growth[226]. - The company expects capital expenditures in 2025 to be approximately $10,000 to $12,000[195].

Core Viewpoint - Northland Capital Markets analyst upgraded Allient Inc. from Market Perform to Outperform, raising the price forecast from $30 to $35, citing improvements in the industrial market and expectations of reduced negative impacts from a weaker vehicle market as FY25 progresses [1] Company Performance - The analyst projects a 14.9% year-over-year sales decline in Q4 to $120 million, closely aligning with the consensus estimate of $119.7 million, attributing challenges to a weaker macro environment and reduced demand from major customers [2] - For FY25, sales are estimated to decline slightly from $527.9 million in FY24 to $518.2 million, while adjusted EBITDA is projected to grow by 16.6% to $68.9 million [3] - There are concerns regarding the FY25 consensus sales estimate being slightly too high, particularly for the second half, with a consensus of $268.0 million compared to the analyst's estimate of $262.4 million [3] Market Reaction - Following the analyst's upgrade, ALNT shares increased by 7% to $26.30 [3]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than the traditional "buying low and selling high" approach, aiming for quicker profits [1] Group 1: Momentum Investing Characteristics - Fast-moving trending stocks can be difficult to enter at the right time, as they may lose momentum if future growth does not justify their high valuations [2] - A safer strategy involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Allient (ALNT) Stock Analysis - Allient (ALNT) has shown a price increase of 28.9% over the past four weeks, indicating growing investor interest [4] - Over the past 12 weeks, ALNT's stock has gained 40%, with a beta of 1.61, suggesting it moves 61% more than the market [5] - ALNT has a Momentum Score of B, indicating a favorable time to invest based on its momentum [6] - The stock has received a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which typically attract more investors [7] - ALNT is trading at a Price-to-Sales ratio of 0.81, suggesting it is undervalued at 81 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides ALNT, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]

Core Viewpoint - U.S. markets are facing uncertainty due to a hawkish stance from the Federal Reserve and political developments, leading investors to adopt a cautious approach. A relative price strength strategy is suggested as a resilient method for identifying investment opportunities while minimizing risks in volatile markets [1]. Group 1: Relative Price Strength Strategy - The relative price strength strategy focuses on stocks that outperform their peers, which is crucial for identifying potential winning investments [3][4]. - Stocks that show impressive earnings growth or valuation multiples but underperform compared to broader groups may indicate underlying issues [3]. - It is essential to assess whether an investment has upside potential, particularly for stocks that have outperformed the S&P 500 over the past 1 to 3 months and possess solid fundamentals [5]. Group 2: Screening Parameters - Screening parameters include relative price changes over 12 weeks, 4 weeks, and 1 week, ensuring stocks have consistently outperformed the S&P 500 [7]. - Positive estimate revisions for the current quarter's earnings are also considered, as upward revisions typically lead to additional price gains [6]. - Stocks must have a Zacks Rank of 1 (Strong Buy), a current price of at least $5, and an average 20-day volume of at least 50,000 to ensure adequate liquidity [8]. Group 3: Company Highlights - **Rigel Pharmaceuticals (RIGL)**: Focuses on innovative small-molecule drugs with a market cap of $424.5 million. The 2024 earnings estimate indicates 112.1% growth, and shares have increased by 157.4% over the past year [11][12]. - **Synchrony Financial (SYF)**: A leading consumer financial services company with a market cap of $25.5 billion. The 2024 earnings estimate suggests 25.6% growth, and shares have risen by 117.9% in the last year [13]. - **SkyWest, Inc. (SKYW)**: Operates as a regional airline with a market cap of $4.5 billion. The 2024 earnings estimate indicates 829.8% growth, and shares have gained 135% in a year [14]. - **Allient Inc. (ALNT)**: Designs and manufactures precision motion control systems with a market cap of $408.3 million. The 2024 earnings estimate has increased by 10.9%, but shares have lost 8.7% in the past year [15][16]. - **Rush Street Interactive (RSI)**: Develops online gaming platforms with a 2024 earnings estimate indicating 235.7% growth. Shares have surged by 137.8% in the last year [17][18].

Group 1: Sappi Limited (SPPJY) - Sappi Limited is a wood fiber-based renewable resources company with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 13.7% over the last 60 days [1] - The company has a price-to-earnings ratio (P/E) of 4.99, compared to 5.10 for the industry, and possesses a Value Score of A [1] Group 2: Townsquare Media, Inc. (TSQ) - Townsquare Media, Inc. is a digital media and marketing solutions company with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 10.3% over the last 60 days [2] - The company has a price-to-earnings ratio (P/E) of 9.21, compared to 24.23 for the S&P, and possesses a Value Score of A [2] Group 3: Allient Inc. (ALNT) - Allient Inc. is an industrial manufacturing company with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings has increased by 8.5% over the last 60 days [3] - The company has a price-to-earnings ratio (P/E) of 16.69, compared to 22.10 for the industry, and possesses a Value Score of A [3]