Specialty Equipment Distributors Stocks Q4 In Review: Alta (NYSE:ALTG) Vs Peers
April 7, 2025
As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the specialty equipment distributors industry, including Alta (NYSE:ALTG) and its peers.
Historically, specialty equipment distributors have boasted deep selection and expertise in sometimes narrow areas like single-use packaging or unique lighting equipment. Additionally, the industry has evolved to include more automated industrial equipment and machinery over the last decade, driving efficiencies and enabling valuable data collection. Specialty equipment distributors whose offerings keep up with these trends can take share in a still-fragmented market, but like the broader industrials sector, this space is at the whim of economic cycles that impact the capital spending and manufacturing propelling industry volumes.
The 8 specialty equipment distributors stocks we track reported a slower Q4. As a group, revenues missed analysts’ consensus estimates by 0.8% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 23.7% since the latest earnings results.
Alta (NYSE:ALTG)
Founded in 1984, Alta Equipment Group (NYSE:ALTG) is a provider of industrial and construction equipment and services across the Midwest and Northeast United States.
Alta reported revenues of $498.1 million, down 4.5% year on year. This print exceeded analysts’ expectations by 2.6%. Despite the top-line beat, it was still a slower quarter for the company with and a significant miss of analysts’ adjusted operating income estimates.
Unsurprisingly, the stock is down 34.8% since reporting and currently trades at $3.32.
Owning the largest rental fleet in the world, United Rentals (NYSE:URI) provides equipment rental and related services to construction, industrial, and infrastructure industries.
United Rentals reported revenues of $4.10 billion, up 9.8% year on year, outperforming analysts’ expectations by 3.9%. The business had a strong quarter with an impressive beat of analysts’ organic revenue and adjusted operating income estimates.
United Rentals delivered the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 28.8% since reporting. It currently trades at $540.
Founded in 1947, Richardson Electronics (NASDAQ:RELL) is a distributor of power grid and microwave tubes as well as consumables related to those products.
Richardson Electronics reported revenues of $49.49 million, up 12.1% year on year, falling short of analysts’ expectations by 3.5%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
As expected, the stock is down 38.1% since the results and currently trades at $9.11.
Formerly a subsidiary of Hertz Corporation and with a logo that still bears some similarities to its former parent, Herc Holdings (NYSE:HRI) provides equipment rental and related services to a wide range of industries.
Herc reported revenues of $951 million, up 14.4% year on year. This number beat analysts’ expectations by 2.5%. More broadly, it was a mixed quarter as it also recorded a solid beat of analysts’ adjusted operating income estimates.
Herc achieved the fastest revenue growth among its peers. The stock is down 42.8% since reporting and currently trades at $118.82.
Inspired by a family gas station, Custom Truck One Source (NYSE:CTOS) is a distributor of trucks and heavy equipment.
Custom Truck One Source reported revenues of $520.7 million, flat year on year. This result missed analysts’ expectations by 3.7%. More broadly, it was actually a strong quarter as it put up an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.
Custom Truck One Source scored the highest full-year guidance raise among its peers. The stock is down 8.8% since reporting and currently trades at $3.65.
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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