AstroNova: Margins Issues To Work Through

Dec. 28, 2024 5:42 AM ETAstroNova, Inc. (ALOT) StockALOT
Andrew Dvorak
122 Followers

Summary

  • AstroNova's Q2 was negatively impacted by customer delays and MTEX integration issues, partly a continuation of year-to-date issues.
  • While their T&M segment is performing well, their PI segment is not. Near-term issues will continue, but I believe most of this is temporal and not structural.
  • If the above is at least mostly true, the implied IRR at today's price offers an attractive investment.

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Introduction

AstroNova (NASDAQ:ALOT) posted a negative Q2 that was impacted by customer delays and (now) expressed troubles integrating their recently acquired MTEX, prompting what appears to be a full-scale organizational realignment. This is on top of their announced

This article was written by

122 Followers
Former buy-side analyst.Fundamental, cash-flow based investing. Always open to sharing ideas/thoughts.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of ALOT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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