Earnings Preview For H&E Equipment Servs

H&E Equipment Servs HEES is gearing up to announce its quarterly earnings on Tuesday, 2024-10-29. Here's a quick overview of what investors should know before the release.

Analysts are estimating that H&E Equipment Servs will report an earnings per share (EPS) of $1.00.

The announcement from H&E Equipment Servs is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Earnings History Snapshot

Last quarter the company missed EPS by $0.12, which was followed by a 3.93% increase in the share price the next day.

Here's a look at H&E Equipment Servs's past performance and the resulting price change:

Market Performance of H&E Equipment Servs's Stock

Shares of H&E Equipment Servs were trading at $55.46 as of October 25. Over the last 52-week period, shares are up 38.73%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Insights Shared by Analysts on H&E Equipment Servs

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on H&E Equipment Servs.

With 2 analyst ratings, H&E Equipment Servs has a consensus rating of Buy. The average one-year price target is $61.0, indicating a potential 9.99% upside.

Peer Ratings Overview

This comparison focuses on the analyst ratings and average 1-year price targets of Distribution Solns Gr, McGrath RentCorp and Transcat, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• The prevailing sentiment among analysts is an Outperform trajectory for Distribution Solns Gr, with an average 1-year price target of $42.5, implying a potential 23.37% downside.
• For McGrath RentCorp, analysts project an Outperform trajectory, with an average 1-year price target of $122.0, indicating a potential 119.98% upside.
• Transcat received a Buy consensus from analysts, with an average 1-year price target of $150.0, implying a potential 170.47% upside.

Analysis Summary for Peers

Within the peer analysis summary, vital metrics for Distribution Solns Gr, McGrath RentCorp and Transcat are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

H&E Equipment Servs ranks at the top for Gross Profit and Return on Equity among its peers. It is in the middle for Revenue Growth.

Unveiling the Story Behind H&E Equipment Servs

H&E Equipment Services Inc is an integrated equipment services company. It is focused on heavy construction and industrial equipment. It rents, sells, and provides parts and services support for four core categories of equipment including hi-lift or aerial work platform equipment, cranes, earthmoving equipment, and industrial lift trucks. It engages in five principal business activities: equipment rentals; new equipment sales; sales of rental equipment; parts sales; and services. The majority of its revenue is derived from the equipment rentals segment.

H&E Equipment Servs: Financial Performance Dissected

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: H&E Equipment Servs's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 4.46%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Net Margin: H&E Equipment Servs's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 8.84% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): H&E Equipment Servs's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 5.9%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): H&E Equipment Servs's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 1.19%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: With a high debt-to-equity ratio of 3.02, H&E Equipment Servs faces challenges in effectively managing its debt levels, indicating potential financial strain.

To track all earnings releases for H&E Equipment Servs visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.