Machinery provider H&E (NASDAQ:HEES) will be announcing earnings results tomorrow before market hours. Here’s what you need to know.
H&E Equipment Services missed analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $376.3 million, up 4.5% year on year. It was a softer quarter for the company, with a miss of analysts’ earnings estimates.
Is H&E Equipment Services a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting H&E Equipment Services’s revenue to decline 3.1% year on year to $388.2 million, a reversal from the 23.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.00 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. H&E Equipment Services has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 3.7% on average.
Looking at H&E Equipment Services’s peers in the specialty equipment distributors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Richardson Electronics delivered year-on-year revenue growth of 2.2%, beating analysts’ expectations by 8.7%, and Herc reported revenues up 6.3%, topping estimates by 3.6%. Richardson Electronics traded down 2.5% following the results while Herc was up 23.9%.
Read our full analysis of Richardson Electronics’s results here and Herc’s results here.
Investors in the specialty equipment distributors segment have had fairly steady hands going into earnings, with share prices down 1.1% on average over the last month. H&E Equipment Services is up 13.9% during the same time and is heading into earnings with an average analyst price target of $63 (compared to the current share price of $55.46).
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefitting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.