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UHAL: Second quarter meets expectations. Increasing price target to $250.

By Ian Gilson, PhD, CFA

On November 06, 2013 AMERCO (UHAL) reported its results for the second fiscal quarter of 2014, followed by a conference call on the 7th November.

Continued increases in transactions together with additional vehicles drove truck revenue up by 11.3%, all operating revenue increased by 7.9% and earnings per share jumped from $5.61 to $7.06. EBITDAL for the quarter was $15.26 a share, up from $14.65 a year ago. The company added another 45 independent dealers to the network in the second quarter.

Moving and storage revenue growth was in line with our expectations. Other revenue jumped from $28.7 million a year ago to $51.0 million in the last quarter. This revenue is driven by the company's U-Box PODS business. The amount of PODS revenue is now large enough that the company will probably break this out as a revenue segment within a few quarters.

It looks like UHAL is one of the largest companies in the PODS market, and probably the most profitable.

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