Research Analysts Set Expectations for MGRC FY2026 Earnings

Key Points

• Sidoti raised McGrath RentCorp’s FY2026 EPS estimate to $6.38 from $6.32, slightly above the $6.37 consensus. The firm projects continued earnings growth to $6.90 in FY2027 and $7.25 in FY2028.
• McGrath RentCorp reported quarterly EPS of $2.00, beating the $1.89 estimate, while revenue of $274.61 million also exceeded expectations. Management cited continued data-center demand and expects 2026 adjusted EBITDA of $365 million to $373 million.
• The stock carries a consensus “Hold” rating with a $140 average price target, while shares opened at $119.60. The company announced a $0.495 quarterly dividend, equivalent to a 1.7% annualized yield.

McGrath RentCorp (NASDAQ:MGRC - Free Report) - Analysts at Sidoti boosted their FY2026 earnings per share estimates for shares of McGrath RentCorp in a research report issued to clients and investors on Thursday, October 29th. Sidoti analyst M. Riddick now expects that the financial services provider will earn $6.38 per share for the year, up from their prior estimate of $6.32. The consensus estimate for McGrath RentCorp's current full-year earnings is $6.37 per share. Sidoti also issued estimates for McGrath RentCorp's Q4 2026 earnings at $1.92 EPS, Q1 2027 earnings at $1.15 EPS, Q2 2027 earnings at $1.55 EPS, Q3 2027 earnings at $1.97 EPS, Q4 2027 earnings at $2.23 EPS, FY2027 earnings at $6.90 EPS, Q1 2028 earnings at $1.18 EPS, Q2 2028 earnings at $1.71 EPS, Q3 2028 earnings at $2.05 EPS and FY2028 earnings at $7.25 EPS.

McGrath RentCorp (NASDAQ:MGRC - Get Free Report) last released its quarterly earnings data on Wednesday, October 28th. The financial services provider reported $2.00 earnings per share for the quarter, beating the consensus estimate of $1.89 by $0.11. McGrath RentCorp had a net margin of 16.75% and a return on equity of 12.85%. The company had revenue of $274.61 million during the quarter, compared to analyst estimates of $273.25 million.

Separately, Weiss Ratings reaffirmed 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 stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $140.00.

McGrath RentCorp Stock Up 0.7%

Shares of NASDAQ MGRC opened at $119.60 on Friday. The firm has a market cap of $2.92 billion, a PE ratio of 18.43, a P/E/G ratio of 1.20 and a beta of 0.47. McGrath RentCorp has a 12-month low of $94.99 and a 12-month high of $125.83. The company's fifty day simple moving average is $113.71 and its 200 day simple moving average is $113.94.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. BlackRock Inc. bought a new position in McGrath RentCorp during the 2nd quarter valued at $252,840,000. Dimensional Fund Advisors LP boosted its holdings in McGrath RentCorp by 5.5% during the 1st quarter. Dimensional Fund Advisors LP now owns 906,954 shares of the financial services provider's stock worth $100,019,000 after acquiring an additional 47,451 shares during the last quarter. Alyeska Investment Group L.P. grew its stake in shares of McGrath RentCorp by 39.2% in the 2nd quarter. Alyeska Investment Group L.P. now owns 330,702 shares of the financial services provider's stock worth $40,025,000 after acquiring an additional 93,196 shares in the last quarter. Neumeier Poma Investment Counsel LLC bought a new stake in shares of McGrath RentCorp in the 2nd quarter worth $35,716,921. Finally, Medina Value Partners LLC bought a new stake in shares of McGrath RentCorp in the 2nd quarter worth $25,451,883. 92.05% of the stock is owned by institutional investors.

Insider Transactions at McGrath RentCorp

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

McGrath RentCorp Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Friday, October 16th will be given 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 of this dividend is Friday, October 16th. McGrath RentCorp's dividend payout ratio is presently 30.51%.

McGrath RentCorp News Summary

Here are the key news stories impacting McGrath RentCorp this week:

• Positive Sentiment: McGrath reported third-quarter revenue of $274.6 million, up 7% year over year, and adjusted earnings of $2.00 per share. EPS exceeded the $1.89 consensus estimate, while revenue also topped expectations of $273.25 million. McGrath Announces Results for Third Quarter 2026
• Positive Sentiment: Management highlighted continued demand from data-center projects, helping lift quarterly profitability. The company expects 2026 adjusted EBITDA of $365 million to $373 million and raised its gross rental-equipment capital-expenditure outlook to $270 million-$290 million, signaling investment in future rental capacity. McGrath signals 2026 adjusted EBITDA and capital expenditure outlook
• Neutral Sentiment: Sidoti’s updated estimates imply continued earnings growth: $6.38 EPS for 2026, $6.90 for 2027 and $7.25 for 2028. However, the changes were mixed, with the firm raising its 2026 estimate and Q4 2027 forecast while lowering estimates for Q4 2026, several 2027 quarters and full-year 2027.
• Negative Sentiment: McGrath forecast 2026 revenue of $945 million-$960 million, below the FactSet estimate of $963.2 million. The lower-than-expected revenue outlook, combined with higher capital spending, could raise concerns about near-term growth conversion and returns on investment. McGrath 2026 revenue outlook

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.

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