What Happened?
Shares of equipment distribution company Alta Equipment Group (NYSE: ALTG) fell 7.3% in the afternoon session after the company reported disappointing third-quarter 2025 financial results that missed Wall Street's expectations for both revenue and earnings.
The equipment distribution company's sales fell 5.8% year-on-year to $422.6 million, falling short of analyst forecasts. On an adjusted basis, the loss per share was $0.35, which was considerably wider than the consensus estimate for a $0.17 loss. Furthermore, the company’s adjusted EBITDA for the quarter decreased to $41.7 million, and its full-year EBITDA guidance of $170 million at the midpoint came in below what analysts had anticipated. Adding to the negative sentiment, Alta's free cash flow was negative $13.2 million, a sharp reversal from a positive $23.9 million in the same quarter last year, prompting concerns about its cash generation.
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What Is The Market Telling Us
Alta’s shares are extremely volatile and have had 52 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 21 days ago when the stock dropped 3.2% on the news that Volvo AB warned of a slowdown in the North American truck market, which added to broader economic fears. Volvo projected declining truck registrations for 2026, citing weaker demand and uncertainties over tariffs as primary concerns. This industry-specific warning was made worse by wider market jitters related to the U.S. economy. Concerns about credit markets grew after some regional banks reported problems with bad loans. This news sparked a sell-off in bank stocks and reflected increased fear in the market.
Alta is down 13.6% since the beginning of the year, and at $5.66 per share, it is trading 34.3% below its 52-week high of $8.62 from July 2025. Investors who bought $1,000 worth of Alta’s shares 5 years ago would now be looking at an investment worth $674.61.
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