The price trend for Douglas Dynamics (PLOW) has been bearish lately and the stock has lost 7.5% over the past two weeks. However, the formation of a hammer chart pattern in its last trading session indicates that the stock could witness a trend reversal soon, as bulls might have gained significant control over the price to help it find support. While the formation of a hammer pattern is a technical indication of nearing a bottom with potential exhaustion of selling pressure, rising optimism among Wall Stree ...

Shares of Douglas Dynamics (PLOW) have gained 26.6% over the past four weeks to close the last trading session at $27.18, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $34 indicates a potential upside of 25.1%. The average comprises three short-term price targets ranging from a low of $25 to a high of $39, with a standard deviation of $7.81. While the lowest estimate indicates ...

Core Viewpoint - Douglas Dynamics (PLOW) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which are crucial for stock price movements [1][2][4]. Earnings Estimates and Stock Performance - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, making it a valuable tool for investors [2][3]. - For Douglas Dynamics, the expected earnings per share for the fiscal year ending December 2024 is $1.62, reflecting a year-over-year increase of 60.4% [7]. - Over the past three months, the Zacks Consensus Estimate for Douglas Dynamics has risen by 15.4% [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [6]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, indicating superior earnings estimate revisions [8][9]. - The upgrade of Douglas Dynamics to Zacks Rank 1 places it in the top 5% of stocks, suggesting potential for near-term price appreciation [9].

| --- | --- | --- | --- | --- | --- | --- | |--------------------------------------------------------------|-------|------------------------------------|----------|----------------------------|-----------|-------------------| | Six Months Ended June 30, 2024 \nPoint in time | $ | Work Truck Attachments \n141,977 | Work \n$ | Truck Solutions \n97,796 | Total \n$ | Revenue \n239,773 | | Over time | | - | | 55,784 | | 55,784 | | Total revenue | $ | 141,977 | $ | 153,580 | $ | 295,557 | | Six Months Ended June ...

Financial Data and Key Metrics Changes - The company reported net sales of $199.9 million for Q2 2024, a slight decrease compared to the same period last year due to lower snowfall impacting attachment volumes, which was offset by strong shipments in solutions [23][10] - Adjusted EBITDA for the quarter increased to $43.7 million from $43.3 million in Q2 2023, with an adjusted EBITDA margin of 21.9%, up 100 basis points from the previous year [10][25] - GAAP net income for Q2 2024 was $24.3 million, or $1.02 per diluted share, approximately in line with the same period last year [10][8] Business Line Data and Key Metrics Changes - Attachments net sales were $118.1 million, down from $141.2 million in Q2 2023, primarily due to lower pre-season orders resulting from below-average snowfall [11][16] - Work Truck Solutions segment saw net sales increase by 23.8% to $81.8 million, driven by higher volumes and improved throughput [12][31] - Adjusted EBITDA margins for attachments remained robust at 30.3%, consistent with the same period last year, despite lower sales [11][35] Market Data and Key Metrics Changes - The company continues to experience positive demand from both municipal and commercial customers, with a backlog of 12 months to work through [6][19] - The recent snow season was approximately 40% below the 10-year average, impacting pre-season orders and overall demand [16][35] - The supply of chassis has improved, which is expected to positively influence production and sales moving forward [5][19] Company Strategy and Development Direction - The company is focused on maintaining its market position while managing through current challenges, with a commitment to continuous improvement and cost management [21][32] - The 2024 Cost Savings Program is expected to deliver $11 million to $12 million in sustainable annualized savings, with $9 million anticipated to be realized in 2024 [23][33] - The company is exploring opportunities for growth in both attachments and solutions but is currently not pursuing any specific acquisitions [56][57] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving long-term growth and profitability goals despite current challenges, emphasizing the importance of managing costs and operations effectively [20][70] - The company expects third-quarter EBITDA margins to be closer to the levels seen in Q3 2023, due to anticipated lower production volumes and a less favorable product mix [26][68] - Management remains optimistic about the future, citing a strong backlog and positive dealer sentiment [27][39] Other Important Information - The company maintained a total liquidity of $90.7 million at the end of Q2 2024, down from $126.7 million at the end of 2023, primarily due to seasonality and reduced spending [42][43] - Capital expenditures for the first half of 2024 were $2.8 million, in line with expectations and significantly lower than the $5.3 million spent in the same period last year [14][23] - The company paid a dividend of $0.295 per share at the end of Q2, with expectations to generate enough free cash flow to cover the total cost of the dividend [28][70] Q&A Session Summary Question: What is driving order activity in Solutions? - Management indicated that the backlog is being maintained with new orders replacing those being fulfilled, and the backlog is actually growing in some cases [52][53] Question: What are the expectations for Solutions margins? - Management noted that while the second half may not see the same margin levels as Q2, improvements are expected to be sustainable, aiming for double-digit margins in the long term [74][87] Question: Are there plans for M&A in the near future? - Management stated that while they are looking at opportunities, no specific acquisitions are being pursued in 2024, with a focus on finding the right fit [56][57] Question: What is driving dealers to pull forward orders in attachments? - Management clarified that it is more about their ability to produce and ship effectively rather than dealers pulling orders ahead [59] Question: What are the expectations for material costs moving forward? - Management expects stable pricing for materials in the near term, with potential benefits from lower steel prices [61]

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.47 on $170.1 million in revenues for the coming quarter and $1.47 on $622.5 million in revenues for the current fiscal year. This quarterly report represe ...

Positive Performance Driven by Work Truck Solutions Growth and Success of 2024 Cost Savings Program July 29, 2024 — Milwaukee, Wisconsin — Douglas Dynamics, Inc. (NYSE: PLOW), North America's premier manufacturer and upfitter of work truck attachments and equipment, today announced financial results for the second quarter ended June 30, 2024. | --- | --- | --- | |------------------------------------------------|-----------|-----------| | $ in millions (except Margins & EPS) | Q2 2024 | Q2 2023 | | Net Sales ...

Positive Performance Driven by Work Truck Solutions Growth and Success of 2024 Cost Savings Program Second Quarter 2024 Highlights*: Work Truck Solutions produced record second quarter top- and bottom-line results. Net Sales increased 23.8% to $81.8 million compared to the same period last year, based on higher volumes on improved throughput and price increase realization. Adjusted EBITDA increased dramatically to $7.9 million, driving margins to 9.7%, its highest second quarter margin, based on improved vo ...

Positive Performance Driven by Work Truck Solutions Growth and Success of 2024 Cost Savings Program *Compared to 2Q23 financials Jim Janik, Chairman, Interim President and CEO, commented, "During the second quarter, we have seen profitability improve despite lower Net Sales impacted by low snowfall, due to the management of throughput, pricing realization, and the successful implementation of the 2024 Cost Savings Program. During the first half of the year, the team made difficult but important decisions re ...

About Douglas Dynamics CONTACT Douglas Dynamics, Inc. Nathan Elwell Vice President of Investor Relations 847-530-0249 investorrelations@douglasdynamics.com MILWAUKEE, July 17, 2024 (GLOBE NEWSWIRE) -- Douglas Dynamics, Inc. (NYSE: PLOW), North America's premier manufacturer and upfitter of work truck attachments and equipment, today announced that it will release financial results for the second quarter 2024 after market close on Monday, July 29, 2024. The conference call will be simulcast live on the Compa ...