Heavy equipment distributor Custom Truck One Source (NYSE:CTOS) will be reporting earnings tomorrow after market hours. Here’s what you need to know.
Custom Truck One Source beat analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $447.2 million, up 3% year on year. It was a softer quarter for the company, with a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.
Is Custom Truck One Source a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Custom Truck One Source’s revenue to grow 3.7% year on year to $540.8 million, slowing from the 7.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.05 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Custom Truck One Source has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Custom Truck One Source’s peers in the specialty equipment distributors segment, some have already reported their Q4 results, giving us a hint as to what we can expect. United Rentals delivered year-on-year revenue growth of 9.8%, beating analysts’ expectations by 3.9%, and SiteOne reported revenues up 5%, topping estimates by 1.3%. United Rentals traded up 2% following the results while SiteOne was also up 5.9%.
Read our full analysis of United Rentals’s results here and SiteOne’s results here.
Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good 2024. An economic soft landing (so far), the start of the Fed's rate cutting campaign, and the election of Donald Trump were positives for the market, and while some of the specialty equipment distributors stocks have shown solid performance, the group has generally underperformed, with share prices down 4.8% on average over the last month. Custom Truck One Source is down 7.7% during the same time and is heading into earnings with an average analyst price target of $6.17 (compared to the current share price of $4.41).
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