Sidoti Csr Lowers Earnings Forecast for McGrath RentCorp

Analysts from Sidoti Csr have reduced their earnings per share estimates for McGrath RentCorp, a provider of financial services, as outlined in a report on October 24, 2023. Analyst M. Riddick now anticipates that the company will generate earnings of $6.09 per share for the fiscal year 2025, down from a previous estimate of $6.31. This adjustment comes as the consensus estimate for McGrath RentCorp’s full-year earnings hovers at $6.18 per share.

In addition to the fiscal year outlook, Sidoti Csr provided estimates for the company’s quarterly earnings. The projections include $1.76 EPS for Q4 2025, $1.10 EPS for Q1 2026, $1.70 EPS for Q2 2026, $1.81 EPS for Q3 2026, and $2.01 EPS for Q4 2026. The complete forecast for FY2026 is set at $6.62 EPS, with subsequent quarterly estimates for FY2027 reaching $1.12 EPS for Q1 and $1.86 EPS for Q2.

Multiple research firms have also shared insights about McGrath RentCorp. Oppenheimer increased their price target from $139.00 to $143.00 and maintained an “outperform” rating as of September 18. Meanwhile, Weiss Ratings reiterated a “buy (B-)” rating on the company’s shares in a note dated October 14. Currently, three analysts have assigned a Buy rating to the stock, leading to a consensus rating of “Buy” and a target price of $147.50, according to MarketBeat.

Recent Stock Performance and Analyst Insights

On Monday, McGrath RentCorp’s stock opened at $113.04. The company boasts a market capitalization of $2.78 billion, a price-to-earnings (PE) ratio of 19.13, and a price-to-earnings-growth (PEG) ratio of 1.21. The stock has a beta of 0.56, indicating lower volatility compared to the broader market. Over the past year, the stock hit a low of $97.81 and a high of $129.93.

The latest quarterly earnings report, released on October 23, revealed that McGrath RentCorp reported earnings of $1.72 per share, which fell short of the consensus estimate of $1.83 by $0.11. The company’s revenue for the quarter was $256.44 million, also below the expected $266.62 million. Comparatively, revenue declined by 3.9% year-over-year, and the return on equity stood at 12.59% with a net margin of 15.62%.

Investment Activities and Shareholder Updates

Recent investment activities indicate a notable interest from large institutional investors in McGrath RentCorp. Channing Capital Management LLC acquired a new position valued at approximately $55 million in the first quarter. Meanwhile, Loomis Sayles & Co. L P increased its stake by 282.1%, owning 328,609 shares worth around $38 million after acquiring an additional 242,598 shares. Similarly, Allianz Asset Management GmbH raised its holdings by an astonishing 1,803.8%, now owning 180,195 shares valued at about $20.9 million.

Director Kimberly Ann Box sold 1,500 shares on August 6 for a total of $177,750 at an average price of $118.50. Following this transaction, Box retains 7,000 shares with a total value of approximately $829,500, marking a decrease of 17.65% in her position. Currently, 1.40% of the company’s stock is owned by insiders.

In further developments, McGrath RentCorp declared a quarterly dividend of $0.485, scheduled for payment on October 31. Shareholders of record as of October 17 will receive this dividend, reflecting an annualized amount of $1.94 and a yield of 1.7%. The company’s dividend payout ratio stands at 32.83%.

McGrath RentCorp operates as a business-to-business rental company both in the United States and internationally. The firm specializes in renting and selling relocatable modular buildings, portable storage containers, and electronic test equipment, functioning through four key segments: Mobile Modular, Portable Storage, TRS-RenTelco, and Enviroplex.