Spotting Winners: H&E Equipment Services (NASDAQ:HEES) And Specialty Equipment Distributors Stocks In Q1

May 18, 2025 at 23:31 PM EDT

HEES Cover Image

Looking back on specialty equipment distributors stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including H&E Equipment Services (NASDAQ: HEES) and its peers.

Historically, specialty equipment distributors have boasted deep selection and expertise in sometimes narrow areas like single-use packaging or unique lighting equipment. Additionally, the industry has evolved to include more automated industrial equipment and machinery over the last decade, driving efficiencies and enabling valuable data collection. Specialty equipment distributors whose offerings keep up with these trends can take share in a still-fragmented market, but like the broader industrials sector, this space is at the whim of economic cycles that impact the capital spending and manufacturing propelling industry volumes.

The 9 specialty equipment distributors stocks we track reported a satisfactory Q1. As a group, revenues missed analysts’ consensus estimates by 0.8% while next quarter’s revenue guidance was in line.

Luckily, specialty equipment distributors stocks have performed well with share prices up 13.8% on average since the latest earnings results.

Weakest Q1: H&E Equipment Services (NASDAQ: HEES)

Founded after recognizing a growth trend along the Mississippi River and opportunities developing in the earthmoving and construction equipment business, H&E (NASDAQ: HEES) offers machinery for companies to purchase or rent.

H&E Equipment Services reported revenues of $319.5 million, down 14% year on year. This print fell short of analysts’ expectations by 11.9%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EBITDA and EPS estimates.

H&E Equipment Services delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 5.9% since reporting and currently trades at $95.66.

Read our full report on H&E Equipment Services here, it’s free.

Best Q1: Hudson Technologies (NASDAQ: HDSN)

Founded in 1991, Hudson Technologies (NASDAQ: HDSN) specializes in refrigerant services and solutions, providing refrigerant sales, reclamation, and recycling.

Hudson Technologies reported revenues of $55.34 million, down 15.2% year on year, outperforming analysts’ expectations by 6%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

Hudson Technologies achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 15.5% since reporting. It currently trades at $7.75.

Is now the time to buy Hudson Technologies? Access our full analysis of the earnings results here, it’s free.

Herc (NYSE: HRI)

Formerly a subsidiary of Hertz Corporation and with a logo that still bears some similarities to its former parent, Herc Holdings (NYSE: HRI) provides equipment rental and related services to a wide range of industries.

Herc reported revenues of $861 million, up 7.1% year on year, exceeding analysts’ expectations by 1%. Still, it was a disappointing quarter as it posted a miss of analysts’ Equipment rentals revenue estimates.

Herc delivered the weakest full-year guidance update in the group. Interestingly, the stock is up 21.3% since the results and currently trades at $135.32.

Read our full analysis of Herc’s results here.

Richardson Electronics (NASDAQ: RELL)

Founded in 1947, Richardson Electronics (NASDAQ: RELL) is a distributor of power grid and microwave tubes as well as consumables related to those products.

Richardson Electronics reported revenues of $53.8 million, up 2.7% year on year. This result missed analysts’ expectations by 1.7%. Zooming out, it was actually a strong quarter as it recorded a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

The stock is down 3.2% since reporting and currently trades at $9.47.

Read our full, actionable report on Richardson Electronics here, it’s free.

United Rentals (NYSE: URI)

Owning the largest rental fleet in the world, United Rentals (NYSE: URI) provides equipment rental and related services to construction, industrial, and infrastructure industries.

United Rentals reported revenues of $3.72 billion, up 6.7% year on year. This number beat analysts’ expectations by 2.5%. Overall, it was a very strong quarter as it also logged an impressive beat of analysts’ organic revenue estimates and an impressive beat of analysts’ EBITDA estimates.

The stock is up 23% since reporting and currently trades at $723.56.

Read our full, actionable report on United Rentals here, it’s free.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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