Mac-Gray Earnings: Here’s Why Shares are Up Now

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 3.69%.

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Mac-Gray Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 90% to $0.19 in the quarter versus EPS of $0.10 in the year-earlier quarter.

Revenue: Decreased 3.13% to $81.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Mac-Gray Corp. reported adjusted EPS income of $0.19 per share. By that measure, the company missed the mean analyst estimate of $0.23. It missed the average revenue estimate of $85 million.

Quoting Management: “Mac-Gray’s first-quarter performance was strong and stable,” said Stewart G. MacDonald, Mac-Gray’s chief executive officer. “This was our fourth consecutive quarter of increased profitability without the benefit of meaningful revenue growth. Our income from operations margin improved year-over-year, adjusted EBITDA was up nearly 7%, and our adjusted earnings more than doubled.”

Key Stats (on next page)…

Revenue decreased 0.71% from $82.18 million in the previous quarter. EPS increased 11.76% from $0.17 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.09 to a profit $0.12. For the current year, the average estimate has moved up from a profit of $0.56 to a profit of $0.66 over the last ninety days.

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

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