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The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $327 million, suggesting growth of 16.4% from the year-ago reported figure. The Zacks Consensus Estimate for quarterly earnings is pinned at $1.01 per share, indicating a year-over-year surge of 71.2%.
Q3 Performance
H&E Equipment’s third-quarter 2022 revenues and earnings increased year over year. The company also beat the Zacks Consensus Estimate on both metrics. It has a trailing four-quarter earnings surprise of 41.7%, on average.
H&E Equipment Services, Inc. Price and EPS Surprise
Our proven model doesn’t conclusively predict an earnings beat for H&E Equipment this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here.
Earnings ESP: HEES has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
In the first nine months of 2022, HEES witnessed 14% growth in total revenues, mainly driven by equipment rental revenues, which increased 29% year over year and helped offset lower sales of used equipment and parts. The increase in equipment rental revenues was primarily attributed to the company’s growing fleet, appreciation in rental rates and improved demand from the prior year. This is likely to have continued in the fourth quarter as well.
Year 2022 was robust for the company in terms of fleet growth and branch expansion. Meanwhile, HEES has been witnessing lower sales of used equipment mainly due to the elevated rental demand. Higher revenues from rentals are expected to have offset the impacts of weak used equipment sales in the quarter.
The Zacks Consensus Estimate for the Total Equipment Rental revenues for the fourth quarter is pegged at $253 million, suggesting growth of 24% from the prior-year period’s reported figure.
The projection for New Equipment Sales is at $21.4 million, indicating a 5% year-over-year drop. The estimate for used equipment sales is projected to decline 20% to $23.6 million. The Zacks Consensus Estimate for Part Sales is pegged at $16 million, indicating 2% year-over-year growth. Service Revenues are expected to grow 2% year over year to $8.5 million. Other revenues are likely to grow 5% to $1.6 million.
The company’s acquisition of One Source Equipment Rentals, which added 10 equipment rental locations to its branch network as well as approximately $138 million in the fleet as measured by original equipment cost, is also expected to have contributed to its top-line performance in the quarter.
The company’s gross margin in the fourth quarter of 2022 is likely to reflect higher margins for rentals, rental other and used equipment sales. Selling, General and Administrative expenses are, however, likely to increase on incased employee-related expenses, higher facility expenses, as well as branch openings. However, gains from higher revenues and gross margins are expected to have negated the impact on its earnings.
Price Performance
Image Source: Zacks Investment Research
In the past year, shares of HEES have gained 29.8% against the industry’s 19.2% growth.
Stocks Poised to Beat Earnings Estimates
Here are some Industrial Products stocks, which, according to our model, have the right combination of elements to post an earnings beat in their upcoming releases:
Allegion plc (ALLE - Free Report) has an Earnings ESP of +4.19% and currently sports a Zacks Rank of 1. The Zacks Consensus Estimate for fourth-quarter 2022 earnings has been unchanged in the past 30 days and is pegged at $1.37 per share. This suggests year-over-year growth of 23.4%
The Zacks Consensus Estimate for ALLE’s quarterly revenues is pegged at $849 million, indicating year-over-year growth of 19.7%. ALLE has a trailing four-quarter earnings surprise of 8.8%, on average.
Deere & Co. (DE - Free Report) currently has an Earnings ESP of +2.30% and a Zacks Rank of 2. The Zacks Consensus Estimate for DE’s first-quarter fiscal 2023 earnings has been unchanged in the past 30 days and is pegged at $5.51 per share. The consensus mark suggests year-over-year growth of 88.7%.
The Zacks Consensus Estimate for DE’s quarterly revenues is pegged at $11.4 billion, indicating growth of 33.9% from the prior-year quarter’s reported level. DE has a trailing four-quarter earnings surprise of 7.1%, on average.
Flowserve (FLS - Free Report) currently has an Earnings ESP of +15.65% and a Zacks Rank of 3. The Zacks Consensus Estimate for fourth-quarter 2022 earnings has moved up 21% in the past 30 days and is pegged at 52 cents per share. This suggests year-over-year growth of 15.6%.
The Zacks Consensus Estimate for quarterly revenues is pegged at $1.01 billion, indicating growth of 10.3% from the prior-year quarter’s reported level.
Image: Bigstock
H&E Equipment (HEES) to Report Q4 Earnings: What's in Store?
H&E Equipment Services (HEES - Free Report) is scheduled to report fourth-quarter 2022 results on Feb 22, before the opening bell.
Q4 Estimates
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $327 million, suggesting growth of 16.4% from the year-ago reported figure. The Zacks Consensus Estimate for quarterly earnings is pinned at $1.01 per share, indicating a year-over-year surge of 71.2%.
Q3 Performance
H&E Equipment’s third-quarter 2022 revenues and earnings increased year over year. The company also beat the Zacks Consensus Estimate on both metrics. It has a trailing four-quarter earnings surprise of 41.7%, on average.
H&E Equipment Services, Inc. Price and EPS Surprise
H&E Equipment Services, Inc. price-eps-surprise | H&E Equipment Services, Inc. Quote
What the Zacks Model Indicates
Our proven model doesn’t conclusively predict an earnings beat for H&E Equipment this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here.
Earnings ESP: HEES has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Factors to Note
In the first nine months of 2022, HEES witnessed 14% growth in total revenues, mainly driven by equipment rental revenues, which increased 29% year over year and helped offset lower sales of used equipment and parts. The increase in equipment rental revenues was primarily attributed to the company’s growing fleet, appreciation in rental rates and improved demand from the prior year. This is likely to have continued in the fourth quarter as well.
Year 2022 was robust for the company in terms of fleet growth and branch expansion. Meanwhile, HEES has been witnessing lower sales of used equipment mainly due to the elevated rental demand. Higher revenues from rentals are expected to have offset the impacts of weak used equipment sales in the quarter.
The Zacks Consensus Estimate for the Total Equipment Rental revenues for the fourth quarter is pegged at $253 million, suggesting growth of 24% from the prior-year period’s reported figure.
The projection for New Equipment Sales is at $21.4 million, indicating a 5% year-over-year drop. The estimate for used equipment sales is projected to decline 20% to $23.6 million. The Zacks Consensus Estimate for Part Sales is pegged at $16 million, indicating 2% year-over-year growth. Service Revenues are expected to grow 2% year over year to $8.5 million. Other revenues are likely to grow 5% to $1.6 million.
The company’s acquisition of One Source Equipment Rentals, which added 10 equipment rental locations to its branch network as well as approximately $138 million in the fleet as measured by original equipment cost, is also expected to have contributed to its top-line performance in the quarter.
The company’s gross margin in the fourth quarter of 2022 is likely to reflect higher margins for rentals, rental other and used equipment sales. Selling, General and Administrative expenses are, however, likely to increase on incased employee-related expenses, higher facility expenses, as well as branch openings. However, gains from higher revenues and gross margins are expected to have negated the impact on its earnings.
Price Performance
Image Source: Zacks Investment Research
In the past year, shares of HEES have gained 29.8% against the industry’s 19.2% growth.
Stocks Poised to Beat Earnings Estimates
Here are some Industrial Products stocks, which, according to our model, have the right combination of elements to post an earnings beat in their upcoming releases:
Allegion plc (ALLE - Free Report) has an Earnings ESP of +4.19% and currently sports a Zacks Rank of 1. The Zacks Consensus Estimate for fourth-quarter 2022 earnings has been unchanged in the past 30 days and is pegged at $1.37 per share. This suggests year-over-year growth of 23.4%
The Zacks Consensus Estimate for ALLE’s quarterly revenues is pegged at $849 million, indicating year-over-year growth of 19.7%. ALLE has a trailing four-quarter earnings surprise of 8.8%, on average.
Deere & Co. (DE - Free Report) currently has an Earnings ESP of +2.30% and a Zacks Rank of 2. The Zacks Consensus Estimate for DE’s first-quarter fiscal 2023 earnings has been unchanged in the past 30 days and is pegged at $5.51 per share. The consensus mark suggests year-over-year growth of 88.7%.
The Zacks Consensus Estimate for DE’s quarterly revenues is pegged at $11.4 billion, indicating growth of 33.9% from the prior-year quarter’s reported level. DE has a trailing four-quarter earnings surprise of 7.1%, on average.
Flowserve (FLS - Free Report) currently has an Earnings ESP of +15.65% and a Zacks Rank of 3. The Zacks Consensus Estimate for fourth-quarter 2022 earnings has moved up 21% in the past 30 days and is pegged at 52 cents per share. This suggests year-over-year growth of 15.6%.
The Zacks Consensus Estimate for quarterly revenues is pegged at $1.01 billion, indicating growth of 10.3% from the prior-year quarter’s reported level.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.