H&E Equipment Services Earnings: Here’s Why Investors are Buying Shares Now

H&E Equipment Services Inc. (NASDAQ:HEES) delivered a profit and met Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 3.37%.

H&E Equipment Services Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 3.33% to $0.31 in the quarter versus EPS of $0.30 in the year-earlier quarter.

Revenue: Rose 17.38% to $245.34 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: H&E Equipment Services Inc. reported adjusted EPS income of $0.31 per share. By that measure, the company missed the mean analyst estimate of $0.31. It beat the average revenue estimate of $244.04 million.

Quoting Management: John Engquist, H&E Equipment Services’ chief executive officer, said, “The strength and momentum in our business continued in the second quarter and was driven by solid improvement in rentals and equipment sales compared to a year ago. Total revenues increased 17.4%, primarily as a result of an 18.8% increase in rental revenues and a 22.4% increase in our combined new and used equipment sales, which remain strong in terms of both demand and margin contribution. As a result, EBITDA increased 22.3% from a year ago. End user demand continues to build and activity regarding earthmoving equipment and cranes is strong, demonstrating improved economic confidence and cycle expansion.”

Key Stats (on next page)…

Revenue increased 15.51% from $212.39 million in the previous quarter. EPS increased 121.43% from $0.14 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.36 to a profit $0.35. For the current year, the average estimate is a profit of $1.22, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)