Why Mobile Mini's Shares Popped

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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 portable storage company Mobile Mini (Nasdaq: MINI ) rose 11% today after reporting earnings.

So what: Third-quarter revenue rose 6% to $100.9 million and net income rose 35.4% to $12.9 million. On an adjusted basis, that translated to earnings per share of $0.29, well ahead of the $0.22 analysts expected.

Now what: The numbers were pretty strong across the board for Mobile Mini, and the company is leveraging capacity, which will expand the bottom line. Utilization was up to 60.6% from 57.7% last quarter, and it looks like the numbers will stay strong in the fourth quarter. The stock is trading at 17 times forward earnings, which is a little too expensive for my blood, but I wouldn't be a seller as a long-term shareholder today.

Interested in more info on Mobile Mini? Add it to your watchlist by clicking here.

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Fool contributor Travis Hoium has no positions in the stocks mentioned above. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his CAPS picks at TMFFlushDraw.

The Motley Fool owns shares of Mobile Mini. Motley Fool newsletter services recommend Mobile Mini. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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