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 7.69% to $0.36 in the quarter versus EPS of $0.39 in the year-earlier quarter.
Revenue: Rose 12.38% to $88.7 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: McGrath Rentcorp reported adjusted EPS income of $0.36 per share. By that measure, the company missed the mean analyst estimate of $0.39. It beat the average revenue estimate of $82.3 million.
Quoting Management: Dennis Kakures, President and CEO of McGrath RentCorp, made the following comments regarding these results and future expectations:
“Although Company-wide rental revenues increased by only 2%, and EPS declined by 8% for the quarter from a year ago, our overall results mask the underlying favorable business activity levels and momentum we are experiencing in each of our rental businesses.”
“We believe that over time our platform of diverse business-to-business rental products and geographies will generate growth in income and share value, while maintaining our financial strength, protecting our balance sheet, providing attractive dividends and making the Company more resilient to future economic cycles.”
Key Stats (on next page)…
Revenue decreased 13% from $101.95 million in the previous quarter. EPS decreased 23.4% from $0.47 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 $0.44 to a profit $0.46. For the current year, the average estimate has moved down from a profit of $1.92 to a profit of $1.9 over the last ninety days.
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)