In a report released today, Scott Schneeberger from Oppenheimer maintained a Hold rating on General Finance (GFN). The company’s shares closed on Friday at $9.98.
Schneeberger wrote:
“F2Q19 adjusted EBITDA of $29.7M (+18% y/y) exceeded our estimate/consensus of $25.0M/$25.1M, respectively. F2Q19 total revenue of $98.0M (+6% y/y) topped our estimate/consensus of $92.1M/$91.7M, respectively. Adjusting for a non- cash derivative/re-financing charge, F2Q19 adjusted EPS of $0.16 (vs. $0.08 in F2Q18) exceeded our estimate/consensus of $0.11. GFN guided FY19 adjusted EBITDA growth of +20% to +25% vs. +14% to +20% a quarter ago. A primary driver of the increased adjusted EBITDA outlook, GFN now anticipates FY19 revenue of $370-390M (+6.5% to +12.3%) compared to its previous guidance of $365-385M (+5.1% to +10.9%) and our existing estimate/consensus of $375M/ $372M, respectively. Our FY19E revenue/adjusted EBITDA update to $380M (+9% y/y; from $375M) and $107.4M (+23% y/y; from $102.6M), with both representing the midpoint of FY19 guidance.”
According to TipRanks.com, Schneeberger is a 5-star analyst with an average return of 7.8% and a 63.2% success rate. Schneeberger covers the Services sector, focusing on stocks such as Service Corp International, XPO Logistics, and United Parcel.
The word on The Street in general, suggests a Hold analyst consensus rating for General Finance.
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Based on General Finance’s latest earnings release for the quarter ending December 31, the company reported a quarterly GAAP net loss of $4.21 million. In comparison, last year the company had a net profit of $2.97 million.
Based on the recent corporate insider activity of 226 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of GFN in relation to earlier this year.
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General Finance Corp. is a rental services company, which engages in the lease and sale of portable storage containers. It operates through the following segments: Royal Wolf, Pac-Van, Lone Star, and Manufacturing. The Royal Wolf segments leases and sells storage containers, portable container buildings, and freight containers.
