McGrath Rentcorp (NASDAQ:MGRC) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.
McGrath Rentcorp Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 9.52% to $0.38 in the quarter versus EPS of $0.42 in the year-earlier quarter.
Revenue: Rose 4.01% to $87.13 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: McGrath Rentcorp reported adjusted EPS income of $0.38 per share. By that measure, the company missed the mean analyst estimate of $0.45. It beat the average revenue estimate of $86.25 million.
Quoting Management: Dennis Kakures, President and CEO of McGrath RentCorp, made the following comments regarding these results and future expectations:
“Although we are disappointed that Company-wide rental revenues increased by only 4% and EPS declined by 10% from a year ago, we are pleased with the underlying favorable business activity levels and momentum we are seeing overall in our rental business portfolio. The primary factor for the quarterly earnings shortfall of $0.04 from a year ago was higher inventory center expenses in our modular division for the preparation of equipment related to increased order activity levels, and secondarily, lower results at Enviroplex.”
Key Stats (on next page)…