Mac-Gray Earnings: Here’s Why Investors Like These Results

Mac-Gray Corp. (NYSE:TUC) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.55%.

Mac-Gray Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 57.14% to $0.11 in the quarter versus EPS of $0.07 in the year-earlier quarter.

Revenue: Rose 1.76% to $79.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Mac-Gray Corp. reported adjusted EPS income of $0.11 per share. By that measure, the company missed the mean analyst estimate of $0.12. It missed the average revenue estimate of $79.75 million.

Quoting Management: “Mac-Gray delivered solid second-quarter results, generating both revenue growth and our fifth consecutive quarter of increased profitability,” said Chief Executive Officer Stewart G. MacDonald. “Same-location multi-housing revenue grew 1.5% in the second quarter compared with the second quarter of 2012. The increase was driven primarily by our vend management capabilities, higher equipment usage year-over-year, the expansion of our proprietary technologies, which are designed to increase equipment usage and efficiency, and an increase in the number of accounts.”

Key Stats (on next page)…

Revenue decreased 2.93% from $81.59 million in the previous quarter. EPS decreased 42.11% from $0.19 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 $0.13 to a profit $0.12. For the current year, the average estimate has moved up from a profit of $0.66 to a profit of $0.67 over the last ninety days.

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