Let’s dig into the relative performance of Alta (NYSE: ALTG) and its peers as we unravel the now-completed Q3 specialty equipment distributors earnings season.

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 satisfactory Q3. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.

While some specialty equipment distributors stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.7% since the latest earnings results.

Weakest Q3: 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 $422.6 million, down 5.8% year on year. This print fell short of analysts’ expectations by 8.4%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ revenue and adjusted operating income estimates.

Alta delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Unsurprisingly, the stock is down 15.8% since reporting and currently trades at $4.95.

Read our full report on Alta here, it’s free for active Edge members.

Best Q3: Richardson Electronics (NASDAQ: RELL)

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 $54.61 million, up 1.6% year on year, outperforming analysts’ expectations by 6%. The business had an incredible quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Richardson Electronics scored the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 1.8% since reporting. It currently trades at $10.81.

Is now the time to buy Richardson Electronics? Access our full analysis of the earnings results here, it’s free for active Edge members.

Herc (NYSE: HRI)

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 $1.30 billion, up 35.1% year on year, exceeding analysts’ expectations by 0.9%. Still, it was a slower quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and a significant miss of analysts’ EPS estimates.

Herc delivered the fastest revenue growth but had the weakest full-year guidance update in the group. Interestingly, the stock is up 8% since the results and currently trades at $143.89.

Read our full analysis of Herc’s results here.

Hudson Technologies (NASDAQ: HDSN)

Founded in 1991, Hudson Technologies (NASDAQ: HDSN) specializes in refrigerant services and solutions, providing refrigerant sales, reclamation, and recycling.

Hudson Technologies reported revenues of $74.01 million, up 19.5% year on year. This print topped analysts’ expectations by 2.7%. It was a stunning quarter as it also recorded a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

The stock is down 11.4% since reporting and currently trades at $7.65.

Read our full, actionable report on Hudson Technologies here, it’s free for active Edge members.

Custom Truck One Source (NYSE: CTOS)

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 $482.1 million, up 7.8% year on year. This result came in 1.5% below analysts' expectations. Aside from that, it was a strong quarter as it produced a beat of analysts’ EPS estimates and an impressive 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 4.3% since reporting and currently trades at $6.45.

Read our full, actionable report on Custom Truck One Source here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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