Oppenheimer Remains a Hold on Mcgrath Rentcorp

In a report released today, Scott Schneeberger from Oppenheimer maintained a Hold rating on Mcgrath Rentcorp (NASDAQ: MGRC). The company’s shares closed yesterday at $59.49, close to its 52-week high of $60.55.

Schneeberger wrote:

“1Q18 EPS of $0.59 (+79% y/y) exceeded our estimate/consensus of $0.45/$0.47, respectively. Total revenue/rental revenue of $105M (+11% y/y)/$74M (+9% y/y) compared to our estimates of $99M ($99M consensus)/$71M, respectively. Mobile Modular continued to build in 1Q18, growing rental revenue 10% y/y. Delivering rental revenue growth of 9% and 8% y/y, respectively, TRS-RenTelco and Adler Tanks both grew y/y for their third/fifth consecutive quarter, respectively, and outperformed our 1Q18 estimates. MGRC’s adjusted EBITDA of $42.8M (+18% y/y) topped our $38.7M estimate. MGRC’s 1Q18 outperformance prompted the company to increase 2018 y/ y operating income growth guidance from 8-12% to 11-15% y/y. We’re incrementally constructive as MGRC possesses significant momentum out of the gate in 2018.”

According to TipRanks.com, Schneeberger is a top 100 analyst with an average return of 14.3% and a 69.3% success rate. Schneeberger covers the Services sector, focusing on stocks such as Service Corp International, Landstar System Inc, and General Finance.

Mcgrath Rentcorp has an analyst consensus of Hold.

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Based on Mcgrath Rentcorp’s latest earnings report for the quarter ending March 31, the company posted quarterly revenue of $105 million and quarterly net profit of $14.47 million. In comparison, last year the company earned revenue of $94.84 million and had a net profit of $7.97 million.

Based on the recent corporate insider activity of 53 insiders, corporate insider sentiment is negative on the stock.

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McGrath RentCorp engages in the management of diversified business to business rental providers. It operates through the following segments: Mobile Modular, TRS-RenTelco, Adler Tanks, and Enviroplex. The Mobile Modular segment operates four inventory center, at which relocatable modular buildings and storage containers are displayed, refurbished, and stored.