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

H&E Equipment Services Inc. (NASDAQ:HEES) delivered a profit and beat 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 1.97%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

H&E Equipment Services Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 27.27% to $0.14 in the quarter versus EPS of $0.11 in the year-earlier quarter.

Revenue: Rose 22.3% to $212.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: H&E Equipment Services Inc. reported adjusted EPS income of $0.14 per share. By that measure, the company beat the mean analyst estimate of $0.13. It beat the average revenue estimate of $196.34 million.

Quoting Management: John Engquist, H&E Equipment Services’ chief executive officer, said, “Our business is off to a solid start in 2013 as we continued to capitalize on improving market conditions, especially the high demand for rental equipment. As a result, our first quarter performance improved significantly from a year ago, with increases in revenue, operating income and EBITDA of 22.3%, 52.5% and 32.6%, respectively. Our rental business continued to experience healthy gains, with revenues increasing 26.4% on rate gains of 10.2% compared to a year ago. The distribution side of our business also performed well, as demonstrated by strong double digit revenue growth in both new and used equipment sales.”

Key Stats (on next page)…

Revenue decreased 15.08% from $250.12 million in the previous quarter. EPS decreased 53.33% from $0.30 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 $0.32 to a profit $0.31. For the current year, the average estimate is a profit of $1.23, which is the same with that ninety days ago.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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