H&E Equipment Services
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), H&E Equipment Services beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share expanded.
Margins grew across the board.
H&E Equipment Services chalked up revenue of $217.0 million. The five analysts polled by S&P Capital IQ expected to see a top line of $183.6 million on the same basis. GAAP reported sales were 24% higher than the prior-year quarter's $174.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.23. The seven earnings estimates compiled by S&P Capital IQ predicted $0.08 per share. GAAP EPS were $0.23 for Q4 against -$0.07 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 25.8%, 190 basis points better than the prior-year quarter. Operating margin was 8.0%, 640 basis points better than the prior-year quarter. Net margin was 3.6%, 500 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $163.0 million. On the bottom line, the average EPS estimate is $0.06.
Next year's average estimate for revenue is $802.7 million. The average EPS estimate is $0.73.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 72 members out of 93 rating the stock outperform, and 21 members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give H&E Equipment Services a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on H&E Equipment Services is outperform, with an average price target of $17.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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 has a disclosure policy.