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Alta (NYSE:ALTG) misses Q3 2026 revenue estimates, stock drops 10.7%
Equipment distribution company Alta Equipment Group (NYSE:ALTG) fell short of the market’s revenue expectations in Q3 2026, with revenue falling 1.2% year on year to $417.4 million. Its non-GAAP loss of $0.19 per share was 10.1% below analysts’ consensus estimates.
For more on Alta, read our free full research report.
Alta (ALTG) Q3 2026 highlights:
- Revenue $417.4 million vs S&P analyst consensus of $453.9 million (1.2% year-on-year decline, 8% miss)
- Adjusted EPS -$0.19 vs S&P analyst consensus of -$0.17 (10.1% miss)
- Adjusted EBITDA $44.9 million vs analysts’ consensus estimates of $46.23 million (10.8% margin, 2.9% miss)
- EBITDA guidance $167.5 million at the midpoint for the full year, below analysts’ consensus estimates of $171.4 million
- Operating margin 1.7%, in line with the same quarter last year
- Free cash flow $31.2 million, up from -$1.7 million in the same quarter last year
- Market capitalization $193.7 million
Ryan Greenawalt, chief executive officer of Alta, said, “Our third quarter results reflect the progress we are making to generate stronger earnings and returns from a more efficient capital base. Adjusted EBITDA increased approximately 8% year over year to $44.9 million despite a meaningfully smaller investment in rental fleet and inventory. Since year-end, we have reduced the combined carrying value of inventory and net rental fleet by approximately $45 million. Additionally, we lowered adjusted total net debt and floor plan payables by approximately $20 million in the quarter and reduced third quarter operating expenses by $2.9 million year over year. These actions are translating into improved profitability, lower interest expense, stronger cash generation and better returns on invested capital, and they remain central to how we will manage the business going forward.”
Revenue growth
Reviewing a company’s long-term revenue performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, Alta grew its revenue at a strong 9.8% compounded annual growth rate. Its growth beat the average industrials company and shows its offerings resonate with customers.
Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Alta’s recent performance marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 2.3% over the last two years. 
This quarter, Alta missed Wall Street’s consensus estimates and reported an uninspiring 1.2% year-on-year revenue decline, generating $417.4 million of revenue.
Looking ahead, sell-side analysts expect revenue to grow 6.1% over the next 12 months, according to S&P, an improvement versus the last two years. This strong projection suggests its newer products and services will spur better revenue performance.
Operating margin
Operating margin is one of the best measures of profitability because it shows how much a company earns after procuring and manufacturing its products, marketing and selling those products and, most importantly, keeping them relevant through research and development.
Over the last five years, Alta’s operating margin fell by 1.6 percentage points. This deterioration shows its costs grew relative to revenue, putting pressure on profitability. Its trailing 12-month operating margin was 1%.
This quarter, Alta generated an operating profit margin of 1.7%, in line with the same quarter last year. This indicates the company’s cost structure has recently been stable.
Earnings per share
Long-term changes in earnings per share, or EPS, matter for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Alta’s earnings losses deepened over the last five years as its EPS dropped 26.2% annually. Falling EPS is a warning sign, as diminishing earnings could imply changing secular trends and preferences. If conditions change unexpectedly, Alta’s low margin of safety could leave its stock price susceptible to large declines.
As with revenue, examining EPS over a shorter period can help identify a change in the business.
For Alta, its two-year annual EPS growth of 2.3% was higher than its five-year trend. Its improving earnings are an encouraging data point, but a caveat is that its EPS is still in the red.
In Q3, Alta reported adjusted EPS of negative $0.19, up from negative $1.10 in the same quarter last year. Despite improving year on year, EPS missed analysts’ consensus estimates. Over the next 12 months, Wall Street expects Alta to narrow its losses. Analysts forecast its full-year EPS will improve from negative $0.86 to negative $0.56, according to S&P.
Key takeaways from Alta’s Q3 results
Alta’s Q3 results offered few positives: Revenue missed Wall Street’s consensus estimates, and EPS also fell short. It was a quarter that could have been better. Shares plunged 10.7% to $5.38 immediately after the release.
Alta may have had a tough quarter. To assess the stock, consider the bigger picture of valuation and business quality alongside the latest earnings. For more on Alta, read our full research report here (it’s free).