Heavy equipment distributor Custom Truck One Source (NYSE: CTOS) will be announcing earnings results this Monday after market hours. Here’s what to look for.
Custom Truck One Source beat analysts’ revenue expectations by 9.6% last quarter, reporting revenues of $511.5 million, up 20.9% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid 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 for active Edge members.
This quarter, analysts are expecting Custom Truck One Source’s revenue to grow 9.4% year on year to $489.5 million, improving from the 3% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.02 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 four times over the last two years.
Looking at Custom Truck One Source’s peers in the industrial distributors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Richardson Electronics delivered year-on-year revenue growth of 1.6%, beating analysts’ expectations by 6%, and United Rentals reported revenues up 5.9%, topping estimates by 1.6%. Richardson Electronics traded up 11.4% following the results while United Rentals was down 7.8%.
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 3.7% on average over the last month. Custom Truck One Source is up 7.6% during the same time and is heading into earnings with an average analyst price target of $7.50 (compared to the current share price of $6.65).
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