The 10-second takeaway
For the quarter ended June 30 (Q2), McGrath Rentcorp met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share contracted.
Margins dropped across the board.
McGrath Rentcorp logged revenue of $87.1 million. The three analysts polled by S&P Capital IQ predicted a top line of $86.9 million on the same basis. GAAP reported sales were 4.0% higher than the prior-year quarter's $83.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.38. The three earnings estimates compiled by S&P Capital IQ anticipated $0.45 per share. GAAP EPS of $0.38 for Q2 were 9.5% lower than the prior-year quarter's $0.42 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 46.1%, 260 basis points worse than the prior-year quarter. Operating margin was 21.1%, 230 basis points worse than the prior-year quarter. Net margin was 11.3%, 120 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $102.8 million. On the bottom line, the average EPS estimate is $0.53.
Next year's average estimate for revenue is $377.0 million. The average EPS estimate is $1.87.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 58 members out of 65 rating the stock outperform, and seven members rating it underperform. Among 32 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 31 give McGrath Rentcorp a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on McGrath Rentcorp is hold, with an average price target of $27.00.
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