Amerco Shares Popped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of U-Haul owner Amerco (Nasdaq: UHAL  ) surged more than 10% after the company reported a surprisingly strong fourth-quarter profit last night.

So what: Amerco is a diversified company whose operations include life insurance and real estate, and of course the U-Haul truck rental business. Revenue grew 10% to $488.4 million in Q1 while per-share profit reversed from a $0.43 per share loss to a $0.52 per share gain. Analysts were expecting $466 million and a $0.77 per share net loss.

Now what: Much as I'd like to call this an inexcusable miss by one analyst who follows Amerco, the conference call transcript shows neither shock nor awe at the beat. Instead, it's just a friendly back-and-forth about the economy, metrics in the U-Haul business, and cash flow. Investors could very well be bidding up the stock on an earnings surprise that wasn't at all surprising to the analyst following the company.

Interested in more info on Amerco? Add it to your watchlist.

Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out his portfolio holdings and Foolish writings, or connect with him on Twitter as @milehighfool. You can also get his insights delivered directly to your RSS reader.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool's disclosure policy is at least 10% better than competing disclosure policies.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1505355, ~/Articles/ArticleHandler.aspx, 12/21/2014 12:36:38 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement