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: Portable storage solutions provider Mobile Mini
So what: Revenue grew 6% from a year ago to $87.9 million and non-GAAP net income rose 6% to $5.4 million, or $0.12 per share. The problem is that the market was expecting revenue to be $89.1 million and earnings per share $0.18.
Now what: Slower-than-expected lease revenue growth was blamed for the earnings miss, but there were some positive signs. Yields were up from last year and utilization appears to be on an uptick as well. The market is expecting a big increase in earnings once we leave this seasonally weak quarter, and I'm cautious that the company's lease revenue will continue to drag on earnings. I'll sit out today and wait for better momentum in financials before jumping in.
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