Textainer Group Holdings Limited Earnings: Here’s Why Investors Don’t Like These Results

Textainer Group Holdings Limited (NYSE:TGH) 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 down 4.83%.

Textainer Group Holdings Limited Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 10.11% to $0.80 in the quarter versus EPS of $0.89 in the year-earlier quarter.

Revenue: Rose 8.43% to $130.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Textainer Group Holdings Limited reported adjusted EPS income of $0.80 per share. By that measure, the company missed the mean analyst estimate of $0.95. It missed the average revenue estimate of $135.92 million.

Quoting Management: “The second quarter was marked by attractive growth in both our lease rental income and net income,” commented Philip K. Brewer, President and Chief Executive Officer of Textainer. “EBITDA also increased significantly from the second quarter of last year demonstrating our strong generation of cash.”

Key Stats (on next page)…

Revenue increased 1.04% from $128.76 million in the previous quarter. EPS decreased 1.23% from $0.81 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 $1.04 to a profit $1.02. For the current year, the average estimate has moved down from a profit of $3.88 to a profit of $3.80 over the last ninety days.

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