Custom Truck One Source Earnings: What To Look For From CTOS

Heavy equipment distributor Custom Truck One Source (NYSE:CTOS) will be reporting earnings this Wednesday after market close. Here’s what investors should know.

Custom Truck One Source missed analysts’ revenue expectations by 3% last quarter, reporting revenues of $422.2 million, up 2.7% year on year. It was a slower quarter for the company, with a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA 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 10.3% year on year to $466.7 million, a reversal from the 7.4% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.03 per share.

The majority of analysts covering the company have 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 Q2 results, giving us a hint as to what we can expect. Richardson Electronics delivered year-on-year revenue growth of 9.5%, missing analysts’ expectations by 3.7%, and United Rentals reported revenues up 4.5%, topping estimates by 0.8%. Richardson Electronics traded up 10.9% following the results while United Rentals was also up 9.5%.

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 6.5% on average over the last month. Custom Truck One Source is up 20.4% during the same time and is heading into earnings with an average analyst price target of $6.17 (compared to the current share price of $5.95).

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