Core Viewpoint - Allient (ALNT) shares have increased by 24.4% in the past four weeks, closing at $23.28, with a potential upside of 26% based on Wall Street analysts' mean price target of $29.33 [1] Price Targets and Analyst Estimates - The mean price target consists of three short-term estimates with a standard deviation of $1.15, indicating a range where the lowest estimate of $28 suggests a 20.3% increase, while the highest estimate of $30 indicates a 28.9% increase [2] - A low standard deviation among price targets suggests strong agreement among analysts regarding the stock's price movement, which can serve as a starting point for further research [7] Earnings Estimates and Analyst Sentiment - Analysts show growing optimism about ALNT's earnings prospects, as indicated by a positive trend in earnings estimate revisions, which historically correlates with near-term stock price movements [9] - Over the last 30 days, the Zacks Consensus Estimate for ALNT's current year earnings has increased by 8.6%, with one estimate moving higher and no negative revisions [10] Zacks Rank and Investment Potential - ALNT holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for upside in the near term [11]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential [1] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, identified through the Zacks Momentum Style Score [2] Group 2: Allient (ALNT) Stock Analysis - Allient (ALNT) has shown a price increase of 24.4% over the past four weeks, indicating growing investor interest [3] - Over the past 12 weeks, ALNT gained 12.7%, demonstrating its ability to deliver positive returns over a longer timeframe [4] - ALNT has a beta of 1.51, suggesting it moves 51% more than the market in either direction, indicating fast-paced momentum [4] - The stock has a Momentum Score of B, suggesting it is an opportune time to invest [5] - ALNT has a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which attract more investors [6] - The stock is trading at a Price-to-Sales ratio of 0.71, indicating it is reasonably valued at 71 cents for each dollar of sales [6] 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 [7] - Zacks offers over 45 Premium Screens tailored to different investing styles, aiding in stock selection [8]

Financial Data and Key Metrics Changes - Revenue for Q3 2024 was $125 million, a year-over-year decline of 14% [15][8] - Gross margin improved by 150 basis points sequentially to 31.4% [10] - Operating margin rose by 170 basis points to 5.3% [10] - Adjusted EBITDA margin climbed by 130 basis points to 11.5% [10] - Net income reached $2.1 million, translating to earnings per diluted share of $0.13 [25] Business Line Data and Key Metrics Changes - Vehicle markets saw a 38% decline, primarily due to decreased demand in power sports [15] - Industrial markets decreased by 9%, despite gains in power quality sales to HVAC and data center sectors [16] - Medical markets softened, with persistent weakness in medical mobility products [17] - Aerospace & Defense sales declined due to program timing, but promising opportunities are being pursued [18] Market Data and Key Metrics Changes - Industrial sector remained the largest market, contributing 47% of trailing 12-month sales, marking a 400 basis point expansion [19] - Vehicle market revenue declined, with higher demand in commercial automotive offset by lower demand in power sports and construction [20] - Distribution channel represented 4% of total sales over the trailing 12-month period [20] Company Strategy and Development Direction - The company is focused on cost reduction and operational efficiency through the "Simplify to Accelerate NOW" initiative, targeting $10 million in annualized savings [11][36] - Efforts are being made to streamline operations and enhance agility, aiming for faster time to market and improved customer service [13] - The company is identifying further cost rationalization opportunities to align with market conditions and customer needs as it heads into 2025 [14] Management's Comments on Operating Environment and Future Outlook - Management noted that order rates have declined as customers adjust inventory levels, influenced by higher interest rates and political uncertainties [33] - Despite challenges, the diversified portfolio remains resilient, with alignment to macro trends like AI and data center growth [34] - The company expects a moderated pace of orders to persist into 2025, with some positive impacts from growth-oriented trends [34] Other Important Information - Cash from operations reached $29.5 million year-to-date, a 9% improvement over the prior year [27] - Total debt was approximately $231 million, with a net debt-to-capitalization ratio of 41.6% [29] - The company amended its credit agreement to add flexibility in financial planning through fiscal 2025 [29] Q&A Session Summary Question: Any surprises in the current performance compared to previous expectations? - Management indicated that performance is playing out as expected, with operational improvements generating internal excitement [39] Question: What is the normalized level of revenue post-inventory destocking? - Management suggested a potential couple of million-dollar monthly improvement in run rates as inventory levels normalize [41] Question: How does the company view the industrial automation market moving forward? - Management acknowledged that Rockwell's performance impacts them directly, and they expect to follow similar trends [56] Question: What is the outlook for the vehicle market? - Management noted that while power sports demand has decreased, internal automotive business is offsetting some losses [66] Question: How is the company managing inventory levels? - Management expects continued reduction in inventory as they navigate long lead times and align with current demand [68] Question: What is the rate on the new interest rate swap? - The rate on the $50 million interest rate swap is 3.32% [69]

Core Insights - Allient (ALNT) reported quarterly earnings of $0.31 per share, exceeding the Zacks Consensus Estimate of $0.21 per share, but down from $0.61 per share a year ago, representing a 47.62% earnings surprise [1] - The company generated revenues of $125.21 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.75%, but down from $145.32 million year-over-year [2] - Allient has outperformed consensus EPS estimates three times in the last four quarters and has also topped revenue estimates three times during the same period [2] Earnings Outlook - The future performance of Allient's stock will largely depend on management's commentary during the earnings call and the sustainability of the stock's immediate price movement based on the recently released numbers [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.21 on revenues of $118.95 million, and for the current fiscal year, it is $1.29 on revenues of $526 million [7] Industry Context - Allient operates within the Zacks Electronics - Miscellaneous Components industry, which is currently ranked in the top 31% of over 250 Zacks industries, indicating a favorable industry outlook [8] - The performance of Allient's stock may also be influenced by the overall industry trends, as research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [8]

Financial Performance - Revenues for Q3 2024 were $125,213 thousand, a decrease of 14% compared to $145,319 thousand in Q3 2023[103] - Gross profit decreased to $39,264 thousand in Q3 2024 from $47,498 thousand in Q3 2023, with gross margin percentage dropping to 31.4% from 32.7%[105] - Net income for Q3 2024 was $2,101 thousand, down 68% from $6,666 thousand in Q3 2023[103] - Net income for the nine months ended September 30, 2024, decreased to $10,153 from $19,750 in 2023, representing a 49% decline[114] - Adjusted net income for the nine months ended September 30, 2024, was $19,471, down from $28,386 in 2023, a decrease of 31%[125] - Revenues for the nine months ended September 30, 2024, were $407,958, a decrease of 7% compared to $437,637 in 2023[114] - EBITDA for the nine months ended September 30, 2024, was $42,438, down from $54,042 in 2023, a decrease of 21%[126] - Adjusted EBITDA for the nine months ended September 30, 2024, was $48,404, compared to $60,255 in 2023, a decrease of 20%[126] - Organic revenue decreased by 13.9% during the year to date 2024[114] - Organic revenue decreased by 21.5% for the three months ended September 30, 2024, and 13.9% for the nine months ended September 30, 2024[132] Bookings and Backlog - Bookings decreased by 34.2% in Q3 2024 compared to the same period in 2023, primarily due to a significant order in the defense market received in Q3 2023[104] - Bookings for the nine months ended September 30, 2024, were $362,131, a decrease of 13% from $415,113 in 2023[114] - Backlog as of September 30, 2024, was $238,492, down 23% from $309,636 in 2023[114] Expenses and Cost Management - Engineering and development expenses decreased by 15% in Q3 2024 compared to Q3 2023, reflecting cost reduction actions[108] - Selling expenses increased by 5% in Q3 2024 compared to Q3 2023, primarily due to costs associated with recent acquisitions[106] - Total operating costs and expenses decreased by 8% in Q3 2024 compared to Q3 2023, amounting to $32,648 thousand[103] - Selling expenses increased by 5% during the nine months ended September 30, 2024, compared to 2023[117] Tax and Compliance - The effective tax rate for Q3 2024 was 22.6%, slightly down from 23.0% in Q3 2023[103] - The effective income tax rate for the nine months ended September 30, 2024, was 21.8%, down from 23.4% in 2023[124] - The Company was in compliance with all financial covenants as of September 30, 2024[141] Cash Flow and Investments - Cash and cash equivalents increased by $5,217 to $37,118 as of September 30, 2024, compared to December 31, 2023[136] - Net cash provided by operating activities for the nine months ended September 30, 2024, was $29,458, an increase of $2,326 from $27,132 in 2023[137] - Cash used in investing activities increased to $(32,134) for the nine months ended September 30, 2024, compared to $(18,854) in 2023, primarily due to a $20 million acquisition[139] Acquisitions and Strategic Initiatives - The company completed the acquisition of SNC in Q1 2024 and Sierramotion in Q3 2023, focusing on integrating these acquisitions for future growth[101] - The company expects annual cost savings of approximately $10 million from the "Simplify to Accelerate NOW" strategy, which aims to enhance efficiency and reduce working capital[100] Foreign Currency and Interest Rates - A hypothetical 10% change in the value of the U.S. dollar would have impacted sales by approximately $4,213 for the nine months ended September 30, 2024[147] - The company had foreign currency contracts with notional amounts of $24,438 as of September 30, 2024, and recorded losses of $461 and $380 on these contracts for the three and nine months ended September 30, 2024, respectively[149] - Interest on the Series A Notes will be payable quarterly at a fixed rate of 5.96% until maturity on March 21, 2031, with an amended rate of 6.46% from October 1, 2024, through September 30, 2025[150] - As of September 30, 2024, the company had $175,962 outstanding under the Revolving Facility, with $150,000 currently being hedged[152] - A hypothetical one percentage point change in the Base Rate on $25,962 of unhedged floating rate debt would impact interest expense by approximately $200 for the nine months ended September 30, 2024[152] - The company entered into interest rate swaps with a combined notional amount of $60,000 maturing in December 2024 and an additional swap of $40,000 maturing in December 2026[151] Internal Controls and Risk Factors - No changes in internal control over financial reporting materially affected the company during the quarter ended September 30, 2024[155] - Management concluded that disclosure controls and procedures were effective as of September 30, 2024[154] - There were no material changes to the risk factors disclosed in the company's Form 10-K for the year ended December 31, 2023[156] Translation Adjustments - Translation adjustments resulted in a gain of $5,805 for the three months ended September 30, 2024, compared to a loss of $2,923 for the same period in 2023[148] - For the nine months ended September 30, 2024, translation adjustments were a gain of $235, while a loss of $1,995 was recorded for the same period in 2023[148] Dividends - The Company declared dividends of $0.09 per share during the nine months ended September 30, 2024, compared to $0.085 per share in 2023[144]

Allient Inc. (NASDAQ:ALNT) Q2 2024 Earnings Conference Call August 8, 2024 10:00 AM ET Company Participants Deborah Pawlowski - Investor Relations Dick Warzala - Chairman, President & Chief Executive Officer Jim Michaud - Senior Vice President & Chief Financial Officer Conference Call Participants Danny Eggerichs - Craig-Hallum Brett Kearney - American Rebirth Opportunity Partners Ted Jackson - Northland Securities Operator Greetings and welcome to the Allient Inc., Second Quarter Fiscal Year 2024 Financial ...

Nasdaq: ALNT August 8, 2024 Second Quarter 2024 Financial Results Call Dick Warzala Chairman, President & CEO Jim Michaud Chief Financial Officer © Allient Inc. SAFE HARBOR STATEMENT The statements in this presentation that relate to future plans, events or performance are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, ...

Allient (ALNT) came out with quarterly earnings of $0.29 per share, missing the Zacks Consensus Estimate of $0.40 per share. This compares to earnings of $0.58 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -27.50%. A quarter ago, it was expected that this motion control product maker would post earnings of $0.51 per share when it actually produced earnings of $0.58, delivering a surprise of 13.73%.Over the last four quarters ...

Revenue and Profit Performance - Revenue decreased by 7% to $136.032 million in Q2 2024 compared to $146.769 million in Q2 2023, primarily due to volume decreases in Vehicle and Industrial markets[115] - Gross profit declined by 12% to $40.676 million in Q2 2024, with gross margin decreasing to 29.9% from 31.3% in Q2 2023[115] - Operating income dropped by 59% to $4.879 million in Q2 2024 compared to $12.020 million in Q2 2023[115] - Net income fell by 83% to $1.150 million in Q2 2024 from $6.769 million in Q2 2023[115] - Net income decreased to $8,052 for the six months ended June 30, 2024, compared to $13,084 in 2023, a 38% decline[123] - Adjusted net income for the six months ended June 30, 2024 was $14,403, down from $18,405 in 2023[130] - Revenues decreased by 3% to $282,745 for the six months ended June 30, 2024, compared to $292,318 in 2023[123] - Gross profit decreased to $88,053 for the six months ended June 30, 2024, from $91,811 in 2023, with gross margin declining to 31.1% from 31.4%[124] - Net income for the three months ended June 30, 2024, was $1.15 million, compared to $6.769 million in the same period in 2023[139] - Non-GAAP adjusted net income for the six months ended June 30, 2024, was $14.403 million, compared to $18.405 million in 2023[142] Acquisitions and Organic Revenue - Acquisitions of SNC in Q1 2024 and Sierramotion in Q3 2023 contributed $10.893 million in incremental revenue in Q2 2024[115] - Organic revenue decreased by 14.2% in Q2 2024, partially offset by revenue from acquisitions[115] - Organic revenue decreased by 10.1% for the six months ended June 30, 2024[123] - The company paid $20 million in cash for the acquisition of SNC during the six months ended June 30, 2024[144] Cost Management and Restructuring - The company implemented the "Simplify to Accelerate NOW" strategy, expecting annual cost savings of $5.0 million and incurring $1.5 million in restructuring costs[112] - Selling expenses increased by 6% to $6.662 million in Q2 2024, primarily due to acquisition-related costs[116] - Business development costs increased by 223% to $1,926 for the six months ended June 30, 2024, primarily due to restructuring-related costs[127] Tax and Interest Expenses - The effective tax rate decreased to 20.6% in Q2 2024 from 23.9% in Q2 2023, driven by the realization of deferred tax assets and foreign income mix[120] - The effective tax rate decreased to 21.6% for the six months ended June 30, 2024, compared to 23.6% in 2023[129] - Interest expense increased by 10% to $6,772 for the six months ended June 30, 2024, driven by higher interest rates and increased debt levels[128] - Interest rates on the Credit Facility range from Term SOFR plus 1.25% to 2.50%, with a rate of 1.875% as of June 30, 2024, depending on the company's debt-to-EBITDA ratio[154] - A 1% change in the Base Rate on the $80,962 of unhedged floating rate debt would impact interest expense by approximately $300 for the six months ended June 30, 2024[155] EBITDA and Adjusted EBITDA - EBITDA decreased to $29,843 for the six months ended June 30, 2024, compared to $35,799 in 2023[131] - Adjusted EBITDA was $33,971 for the six months ended June 30, 2024, down from $39,406 in 2023[131] - Adjusted EBITDA for the six months ended June 30, 2024, was $33.971 million, down from $39.406 million in the same period in 2023[139] Cash Flow and Capital Expenditures - Cash and cash equivalents decreased by $609 thousand to $31.292 million as of June 30, 2024, with $26.372 million located at foreign subsidiaries[143] - Capital expenditures for the full year 2024 are expected to be between $11 million and $15 million[145] - The company declared dividends of $0.06 per share during the six months ended June 30, 2024, up from $0.055 per share in 2023[147] Foreign Currency and Hedging - A hypothetical 10% change in the value of the U.S. dollar would impact sales by approximately $4.618 million for the six months ended June 30, 2024[149] - Foreign currency translation adjustments resulted in a loss of $5.586 million for the six months ended June 30, 2024, compared to a gain of $928 million in 2023[150] - The company had foreign currency contracts with notional amounts of $17.089 million at June 30, 2024, to minimize foreign currency exposure[152] - The company uses interest rate swaps to manage interest rate risk, with two swaps totaling $20,000 in March 2020, increasing to $60,000 by March 2022, maturing in December 2024[154] - An additional interest rate swap of $40,000 was entered into in March 2022, maturing in December 2026[154] - As of June 30, 2024, the company had $180,962 outstanding under the Revolving Facility, with $100,000 currently hedged[155] Bookings and Backlog - Bookings remained flat at $137.373 million in Q2 2024, while backlog decreased by 13% to $259.002 million[115]

Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:AMN Healthcare Services (AMN) is a travel healthcare staffing company. The Zacks Consensus Estimate for its current year earnings has been revised almost 18.4% downward over the last 60 days.ALLIENT INC (ALNT) designs, manufactures and sells precision and specialty-controlled motion components and systems. The Zacks Consensus Estimate for its current year earnings has been revised 18.9% downward over the last 60 days.Denso (DNZOY) is ...