Allied Motion Technologies (AMOT) Stock

Allied Motion Technologies Inc. (NASDAQ:AMOT ) Q2 2023 Earnings Conference Call August 3, 2023 10:00 AM ET Company Participants Craig Mychajluk - Investor Relations Richard Warzala - Chairman, President & Chief Executive Officer Mike Leach - Chief Financial Officer Conference Call Participants Greg Palm - Craig-Hallum Capital Group Ted Jackson - Northland Securities Brett Kearney - Gabelli Funds Operator Good day, and welcome to the Allied Motion Technologies Second Quarter Fiscal Year 2023 Financial Results Conference Call. [Operator Instructions] Please note this event is being recorded.

Allied Motion Technologies Inc. offers a good entry point for exposure to the industrial sector, despite trading above sector valuation metrics, due to its fast growth and diversified revenue streams. The company's backlog sits at $308 million, a 7% YoY increase, and recent earnings highlighted strong demand, a 27% revenue growth, and margin expansion, with gross margins now above the sector's average. Risks include the company's growing debt, which has nearly doubled since 2022, and the net debt/EBITDA ratio is above the preferred threshold, indicating potential risks with paying debt.

A small-cap stock is a security whose market capitalization ranges between $250 million and $2 billion. Small-cap stocks are often companies that are relatively small and focused on a niche business.

Allied Motion Technologies (AMOT) came out with quarterly earnings of $0.55 per share, beating the Zacks Consensus Estimate of $0.45 per share. This compares to earnings of $0.24 per share a year ago.

Allied Motion (AMOT) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.