Douglas Dynamics Inc (PLOW)

Douglas Dynamic Inc (PLOW) stock fell by 5.29% due to a rating downgrade. Baird downgraded the company from Outperform to Neutral and adjusted the price target from $36.00 to $25.00.

• Reasons for Downgrade: The downgrade was based on pre-season checks indicating weaker order intentions than expected, primarily due to insufficient snowfall. Douglas Dynamics, specializing in snow and ice management equipment, also faces challenges such as excessive inventory levels, rising interest rates, financing issues, and a decline in light-truck sales.
• Impact on Financial Expectations: The weaker snowfall and other challenges have had a more significant impact on Douglas Dynamics' pre-season expectations than initially projected. Baird noted that while these issues were not unexpected, their influence on the company's financial performance in the near term was greater than previously modeled.

Douglas Dynamics Stock (PLOW) dropped by 13.07% from $27.93 to $24.28 in the trading on Tuesday October 31, 2023. The reason why PLOW stock down today include:

• Missed Q3 financial results: Douglas Dynamics reported third quarter EPS of $0.25, $0.22 worse than the analyst estimate of $0.47. Revenue for the quarter came in at $144.1M versus the consensus estimate of $162.83M.
• Disappointing guidance: Douglas Dynamics sees FY 2023 EPS of $1.30 - $1.70 versus the analyst consensus of $1.73, FY 2023 revenue of $610.00M - $640.00M versus the analyst consensus of $632.40M.