H&E Equipment Services (HEES) has posted four straight positive earnings surprises and carries an implied earnings growth rate of 43% helping to make the stock a Zacks #2 Rank (Buy).
H&E Equipment Services is one of the largest integrated equipment services companies in the United States with full-service facilities throughout the Intermountain, Southwest, Gulf Coast & Southeast regions of the United States. The Company is focused on heavy construction & industrial equipment and rents, sells & provides parts & service support for four core categories of specialized equipment. They are hi-lift or aerial platform equipment, cranes, earthmoving equipment & industrial lift trucks. By providing equipment rental, sales, on-site parts, repair and maintenance functions under one roof, the company is a one-stop provider for its customers' varied equipment needs. This full service approach provides the Company with multiple points of customer contact, enabling it to maintain a high quality rental fleet, as well as an effective distribution channel for fleet disposal and provides cross-selling opportunities among its new and used equipment sales, rental, parts sales & service operations.
H&E Equipment Services Tops Estimates in Four Straight Quarters
H&E Equipment Services topped the Zacks Consensus Estimate in each of the last four quarters. The average beat has been $0.10 above the Zacks Consensus Estimate which works out to be an average beat of 167%. In the sessiosn following the earnings releases HEES has seen its stock move higher two times and lower two times in the last four reports. The average of these four moves is an increase of 1.6%.
The largest positive price movement in the stock came the day after the company reported the September 2011 quarter. H&E Equipment Services beat the topline estimate of $178 million by posting revenue of $184 million, a year over year increase of 19%. EPS of $0.14 was $0.07 higher than the $0.07 Zacks Consensus Estimate which caused the stock moved higher by more than 12%.