Albany International Posts Q3 Beat and Raises FY2021 Guidance

Albany International (AIN) delivered stronger-than-expected Q3 results, topping both earnings and revenue estimates. The quarterly beat was attributable to strong performances across all segments. The company also boosted its outlook for FY2021.

Markedly, shares of the industrial goods company that develops and manufactures engineered components have jumped 53% over the past year. (See Albany International stock charts on TipRanks)

Adjusted earnings of $0.83 per beat analysts’ expectations of $0.70 per share but were lower than the reported earnings of $0.96 per share in the prior-year period.

Revenues jumped 9.6% year-over-year to $232.4 million and exceeded consensus estimates of $219.57 million. The increase in revenues reflected a surge in the Machine Clothing segment, which increased 11% to $154.2 million.

Based on the robust Q3 results, management raised its financial guidance for FY2021. The company now forecasts adjusted earnings in the range of $3.15 to $3.30 per share, while the consensus estimate is pegged at $3.29 per share. Revenues are forecast to be in the range of $900 to $920 million, versus the consensus estimate of $904 million.

Concurrent with the earnings announcement, the company also approved a share repurchase authorization worth $200 million.

Albany International CFO Stephen Nolan commented, “We recognize there are risks ahead in terms of supply chain constraints and inflationary pressures. However, the Company is very well positioned with excellent customer relationships, a strong and growing business base and in-demand advanced technologies that are expected to drive long-term business growth.”

Truist Financial analyst Michael Ciarmoli recently decreased the price target on Albany International to $85 (4.6% upside potential) from $89 and reiterated a Hold rating on the shares.

Ciarmoli expected Q3 to be “one of the more challenging” quarters due to a lack of catalysts, negative impacts from supply chain constraints, inflationary pressures, as well as uncertainties regarding the defense budget.

Overall, the stock has a Hold consensus rating based on 1 Buy and 3 Holds. The average Albany International price target of $91.50 implies 12.6% upside potential from current levels.

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