Specialty Equipment Distributors Stocks Q1 Results: Benchmarking United Rentals (NYSE:URI)
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how United Rentals (NYSE:URI) and the rest of the specialty equipment distributors stocks fared in Q1.
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 11 specialty equipment distributors stocks we track reported a mixed Q1; on average, revenues were in line with analyst consensus estimates. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and while some of the specialty equipment distributors stocks have fared somewhat better than others, they collectively declined, with share prices falling 1.8% on average since the previous earnings results.
United Rentals (NYSE:URI)
Headquartered in Stamford, CT, United Rentals (NYSE:URI) provides equipment rental and related services to various industries including construction, industrial, and infrastructure.
United Rentals reported revenues of $3.49 billion, up 6.1% year on year, in line with analysts' expectations. Overall, it was a decent quarter for the company with full-year revenue guidance beating analysts' expectations but a miss of analysts' earnings estimates.
Matthew Flannery, chief executive officer of United Rentals, said, “We're pleased with our start to 2024, which delivered first quarter records across revenue, adjusted EBITDA, and EPS. Our results are a testament to the team’s commitment to putting our customers at the center of everything we do and efficiently leveraging our competitive advantages. Our acquisition of Yak last month provides another excellent example of our strategy to grow our specialty rental business, differentiate our one-stop-shop capabilities and capitalize on both secular growth and cross-selling opportunities.”
United Rentals pulled off the highest full-year guidance raise of the whole group. The stock is up 10.2% since reporting and currently trades at $721.61.
Is now the time to buy United Rentals? Access our full analysis of the earnings results 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 $65.25 million, down 15.5% year on year, outperforming analysts' expectations by 7.5%. It was an exceptional quarter for the company with a solid beat of analysts' earnings estimates.
Hudson Technologies pulled off the biggest analyst estimates beat among its peers. Although it had a great quarter compared its peers, the market seems unhappy with the results as the stock is down 6.5% since reporting. It currently trades at $9.14.
Is now the time to buy Hudson Technologies? Access our full analysis of the earnings results here, it's free.
Weakest Q1: Titan Machinery (NASDAQ:TITN)
Founded in 1980, Titan Machinery (NASDAQ:TITN) is a distributor of agricultural and construction equipment across the United States and Europe.
Titan Machinery reported revenues of $628.7 million, up 10.4% year on year, falling short of analysts' expectations by 5%. It was a weak quarter for the company with a miss of analysts' earnings estimates.
As expected, the stock is down 23.2% since the results and currently trades at $17.79.
Read our full analysis of Titan Machinery's results here.
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 $804 million, up 8.6% year on year, surpassing analysts' expectations by 2.4%. Taking a step back, it was an exceptional quarter for the company with an impressive beat of analysts' Equipment rentals revenue estimates and a decent beat of analysts' earnings estimates.
The stock is up 1.9% since reporting and currently trades at $151.25.
Read our full, actionable report on Herc here, it's free.
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 $52.38 million, down 25.6% year on year, falling short of analysts' expectations by 6.5%. Zooming out, it was a mixed quarter for the company with an impressive beat of analysts' earnings estimates.
Richardson Electronics had the slowest revenue growth among its peers. The stock is up 32.3% since reporting and currently trades at $12.35.
Read our full, actionable report on Richardson Electronics here, it's free.
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