Heavy equipment distributor Custom Truck One Source (NYSE: CTOS) will be reporting results this Monday after the bell. Here’s what investors should know.
Custom Truck One Source missed analysts’ revenue expectations last quarter, reporting revenues of $528.2 million, up 1.4% year on year. It was a satisfactory quarter for the company, with a beat of analysts’ EPS estimates but a significant miss of analysts’ revenue estimates.
Is Custom Truck One Source a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Custom Truck One Source’s revenue to grow 7.6% year on year, improving from the 2.7% increase it recorded in the same quarter last year.
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. Custom Truck One Source has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Custom Truck One Source’s peers in the industrial distributors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Richardson Electronics delivered year-on-year revenue growth of 3.1%, beating analysts’ expectations by 4.4%, and United Rentals reported revenues up 7.2%, topping estimates by 2.4%. Richardson Electronics traded up 22.7% following the results while United Rentals was also up 22.9%.
Read our full analysis of Richardson Electronics’s results here and United Rentals’s results here.
There has been positive sentiment among investors in the industrial distributors segment, with share prices up 12.6% on average over the last month. Custom Truck One Source is up 35.1% during the same time and is heading into earnings with an average analyst price target of $8.14 (compared to the current share price of $8.73).
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