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What To Expect From Custom Truck One Source’s (CTOS) Q1 Earnings

CTOS Cover Image

Heavy equipment distributor Custom Truck One Source (NYSE: CTOS) will be reporting earnings tomorrow after market hours. Here’s what to look for.

Custom Truck One Source missed analysts’ revenue expectations by 3.7% last quarter, reporting revenues of $520.7 million, flat year on year. It was a strong quarter for the company, with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income 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 5.9% year on year to $435.5 million, a reversal from the 9% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.05 per share.

Custom Truck One Source Total Revenue

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 three times over the last two years.

Looking at Custom Truck One Source’s peers in the specialty equipment distributors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. United Rentals delivered year-on-year revenue growth of 6.7%, beating analysts’ expectations by 2.5%, and Richardson Electronics reported revenues up 2.7%, falling short of estimates by 1.7%. United Rentals traded up 10.1% following the results while Richardson Electronics was down 17.2%.

Read our full analysis of United Rentals’s results here and Richardson Electronics’s results here.

Investors in the specialty equipment distributors segment have had fairly steady hands going into earnings, with share prices down 1.3% on average over the last month. Custom Truck One Source is down 1.7% during the same time and is heading into earnings with an average analyst price target of $6.08 (compared to the current share price of $4.15).

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