McGrath RentCorp (NASDAQ:MGRC) Releases Quarterly Earnings Results, Beats Expectations By $0.11 EPS

Key Points

• McGrath RentCorp beat quarterly expectations: Earnings were $2.00 per share versus the $1.89 consensus estimate, while revenue reached $274.61 million, slightly above expectations.
• The company declared a quarterly dividend of $0.495 per share, equivalent to $1.98 annually and a 1.7% yield, with a payout ratio of 31.88%.
• Shares traded around $118.78 after declining modestly, while analysts maintained an overall “Hold” rating with an average price target of $140; insiders sold 13,935 shares worth approximately $1.64 million over the past three months.

McGrath RentCorp (NASDAQ:MGRC - Get Free Report) issued its quarterly earnings data on Wednesday. The financial services provider reported $2.00 earnings per share for the quarter, topping analysts' consensus estimates of $1.89 by $0.11, FiscalAI reports. McGrath RentCorp had a return on equity of 12.44% and a net margin of 16.38%. The business had revenue of $274.61 million for the quarter, compared to analyst estimates of $273.25 million.

McGrath RentCorp Stock Performance

Shares of NASDAQ:MGRC traded down $0.78 during mid-day trading on Wednesday, reaching $118.78. 286,440 shares of the company's stock were exchanged, compared to its average volume of 175,136. McGrath RentCorp has a twelve month low of $94.99 and a twelve month high of $125.83. The firm has a market capitalization of $2.90 billion, a price-to-earnings ratio of 19.13, a PEG ratio of 1.19 and a beta of 0.47. The business's fifty day moving average price is $113.69 and its 200-day moving average price is $113.83.

McGrath RentCorp Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Friday, October 16th will be issued a dividend of $0.4950 per share. This represents a $1.98 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date is Friday, October 16th. McGrath RentCorp's payout ratio is 31.88%.

Insider Activity at McGrath RentCorp

In other news, CEO Philip Hawkins sold 4,435 shares of the stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $120.91, for a total value of $536,235.85. Following the completion of the sale, the chief executive officer owned 13,371 shares of the company's stock, valued at approximately $1,616,687.61. This represents a 24.91% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Joseph F. Hanna sold 7,500 shares of the firm's stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $115.04, for a total value of $862,800.00. Following the transaction, the director owned 144,049 shares of the company's stock, valued at $16,571,396.96. This trade represents a 4.95% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 13,935 shares of company stock worth $1,639,856 over the last three months. Company insiders own 1.40% of the company's stock.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings reissued a "hold (c+)" rating on shares of McGrath RentCorp in a research note on Monday. One investment analyst has rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $140.00.

McGrath RentCorp Company Profile

McGrath RentCorp was a business-to-business rental company that provided modular buildings, portable storage, electronic test equipment and related products. Its modular building offerings served customers needing temporary or permanent space, including classrooms, offices, healthcare facilities and other commercial or institutional applications.

Through brands such as Mobile Modular, the company rented relocatable buildings and portable storage units, while its TRS-RenTelco business provided electronic test and measurement equipment to telecommunications, electronics, aerospace, defense and other industrial customers.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.