Q2 Earnings Estimate for McGrath RentCorp Issued By Sidoti

Key Points

• Sidoti cut Q2 2026 EPS for McGrath RentCorp (MGRC) to $1.48 from $1.63 and now models FY2026 EPS at $6.29 versus a MarketBeat consensus full‑year estimate of $6.52.
• Q1 results and guidance raised caution: McGrath reported Q1 EPS of $1.10 (missing the $1.13 consensus), issued FY2026 revenue guidance of $945M–$995M that limits upside versus the ~$967.7M street view, and warned of margin pressure; the stock traded down about 6.9%.
• Dividend increased: The company raised its quarterly dividend to $0.495 ($1.98 annualized), implying a dividend yield around 1.8% with a payout ratio near 31%.

McGrath RentCorp (NASDAQ:MGRC - Free Report) - Stock analysts at Sidoti dropped their Q2 2026 earnings per share estimates for McGrath RentCorp in a research note issued on Thursday, April 30th. Sidoti analyst M. Riddick now anticipates that the financial services provider will post earnings per share of $1.48 for the quarter, down from their previous estimate of $1.63. The consensus estimate for McGrath RentCorp's current full-year earnings is $6.52 per share. Sidoti also issued estimates for McGrath RentCorp's FY2026 earnings at $6.29 EPS.

A number of other equities research analysts also recently weighed in on MGRC. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of McGrath RentCorp in a report on Friday, April 24th. Zacks Research upgraded shares of McGrath RentCorp from a "strong sell" rating to a "hold" rating in a research note on Thursday, January 15th. Finally, Barclays began coverage on shares of McGrath RentCorp in a research note on Wednesday, February 11th. They issued an "overweight" rating and a $140.00 target price for the company. Two equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $141.50.

McGrath RentCorp Trading Down 6.9%

NASDAQ MGRC opened at $110.55 on Friday. The stock's 50 day moving average is $110.81 and its two-hundred day moving average is $109.96. The company has a market capitalization of $2.72 billion, a price-to-earnings ratio of 17.55, a PEG ratio of 1.18 and a beta of 0.49. McGrath RentCorp has a 1-year low of $94.99 and a 1-year high of $128.41.

McGrath RentCorp (NASDAQ:MGRC - Get Free Report) last released its earnings results on Wednesday, April 29th. The financial services provider reported $1.10 earnings per share for the quarter, missing the consensus estimate of $1.13 by ($0.03). The company had revenue of $198.54 million during the quarter, compared to the consensus estimate of $198.19 million. McGrath RentCorp had a net margin of 16.38% and a return on equity of 12.94%.

McGrath RentCorp Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, April 30th. Stockholders of record on Thursday, April 16th were paid a $0.495 dividend. This represents a $1.98 dividend on an annualized basis and a dividend yield of 1.8%. This is an increase from McGrath RentCorp's previous quarterly dividend of $0.49. The ex-dividend date was Thursday, April 16th. McGrath RentCorp's dividend payout ratio is presently 31.18%.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of MGRC. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in McGrath RentCorp by 4.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 14,528 shares of the financial services provider's stock worth $1,618,000 after purchasing an additional 639 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in McGrath RentCorp by 5.4% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 77,256 shares of the financial services provider's stock worth $8,606,000 after purchasing an additional 3,967 shares during the last quarter. Jane Street Group LLC raised its position in McGrath RentCorp by 2,213.6% in the 1st quarter. Jane Street Group LLC now owns 58,140 shares of the financial services provider's stock worth $6,477,000 after purchasing an additional 55,627 shares during the last quarter. Focus Partners Wealth raised its position in McGrath RentCorp by 68.6% in the 1st quarter. Focus Partners Wealth now owns 2,044 shares of the financial services provider's stock worth $228,000 after purchasing an additional 832 shares during the last quarter. Finally, Intech Investment Management LLC raised its position in McGrath RentCorp by 24.8% in the 1st quarter. Intech Investment Management LLC now owns 13,800 shares of the financial services provider's stock worth $1,537,000 after purchasing an additional 2,745 shares during the last quarter. Institutional investors own 92.05% of the company's stock.

McGrath RentCorp News Roundup

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

• Positive Sentiment: Q1 revenue rose 2% year‑over‑year to $198.5M, showing continued top‑line growth despite a tougher demand environment. McGrath Announces Results for First Quarter 2026
• Positive Sentiment: Leadership change: coverage noted the new CEO taking the helm, which could bring strategic shifts and operational improvements over time. Investors may view this as a potential catalyst. McGrath RentCorp earnings in focus as new CEO takes the helm
• Neutral Sentiment: Full Q1 materials (slide deck and call transcript) are available for investors to dig into segment performance and management detail. Use these to assess whether missed metrics are one‑time or structural. McGrath RentCorp (MGRC) Q1 2026 Earnings Call Transcript
• Negative Sentiment: Q1 EPS of $1.10 missed consensus ($1.13) and declined vs. prior year; revenue of $198.5M materially missed the ~$239M street estimate — the revenue shortfall is the biggest immediate driver of downside. McGrath (MGRC) Q1 Earnings Lag Estimates
• Negative Sentiment: The company set FY2026 revenue guidance of $945M–$995M versus consensus of ~$967.7M — the range’s midpoint and lower bound leave upside limited and imply caution about end‑market demand. (Company guidance update and press release.) Press Release / Slide Deck
• Negative Sentiment: Management warned of margin pressure — balancing growth with margin headwinds was emphasized on the call, which pressures near‑term profitability until cost or pricing dynamics improve. McGrath RentCorp Balances Growth With Margin Headwinds

McGrath RentCorp Company Profile

McGrath RentCorp, through its subsidiaries, provides rental, sales, and servicing of equipment for commercial, industrial, environmental, and residential markets. The company operates primarily through two segments—mobile storage and water management—offering flexible solutions for customers requiring on-site storage, water transport, treatment, and dewatering services.

In its mobile storage segment, McGrath RentCorp supplies portable storage containers and modular office units to sectors including construction, retail, government, and disaster restoration.

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