Q3 Earnings Forecast for McGrath RentCorp Issued By Sidoti

Key Points

• Sidoti raised McGrath RentCorp’s Q3 2026 EPS forecast to $1.85 from $1.79, while projecting full-year 2026 EPS of $6.32 and 2027 EPS of $7.01. The stock has a consensus “Moderate Buy” rating and a $141.50 target price.
• McGrath’s latest quarter fell short of expectations, with EPS of $1.37 versus $1.47 expected and revenue of $221.1 million versus $236.5 million forecast. Revenue declined 6% year over year, although rental operations revenue increased 6%.
• The company maintained its 2026 outlook of $955 million-$985 million in revenue and plans to raise gross rental capital expenditures to $200 million-$220 million. It also declared a quarterly dividend of $0.495 per share, implying a 1.7% yield.

McGrath RentCorp (NASDAQ:MGRC - Free Report) - Analysts at Sidoti boosted their Q3 2026 EPS estimates for shares of McGrath RentCorp in a research note issued on Thursday, July 30th. Sidoti analyst M. Riddick now expects that the financial services provider will post earnings per share of $1.85 for the quarter, up from their previous estimate of $1.79. The consensus estimate for McGrath RentCorp's current full-year earnings is $6.35 per share. Sidoti also issued estimates for McGrath RentCorp's Q4 2026 earnings at $2.00 EPS, FY2026 earnings at $6.32 EPS, Q1 2027 earnings at $1.17 EPS, Q2 2027 earnings at $1.63 EPS, Q3 2027 earnings at $2.02 EPS, Q4 2027 earnings at $2.18 EPS and FY2027 earnings at $7.01 EPS.

Separately, Weiss Ratings raised shares of McGrath RentCorp from a "hold (c)" rating to a "hold (c+)" rating in a research report on Tuesday. Two investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $141.50.

McGrath RentCorp Stock Down 1.7%

Shares of NASDAQ MGRC opened at $115.00 on Friday. McGrath RentCorp has a twelve month low of $94.99 and a twelve month high of $127.68. The firm has a fifty day simple moving average of $115.56 and a 200 day simple moving average of $113.40. The company has a market capitalization of $2.82 billion, a PE ratio of 18.52, a P/E/G ratio of 1.19 and a beta of 0.43.

McGrath RentCorp (NASDAQ:MGRC - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The financial services provider reported $1.37 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.47 by ($0.10). McGrath RentCorp had a return on equity of 12.49% and a net margin of 16.38%.The firm had revenue of $221.11 million during the quarter, compared to analyst estimates of $236.51 million.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in MGRC. River Road Asset Management LLC raised its holdings in shares of McGrath RentCorp by 3.1% in the 4th quarter. River Road Asset Management LLC now owns 2,131,121 shares of the financial services provider's stock worth $223,619,000 after acquiring an additional 64,566 shares during the last quarter. Comerica Bank boosted its stake in McGrath RentCorp by 96.8% during the 4th quarter. Comerica Bank now owns 58,374 shares of the financial services provider's stock valued at $6,125,000 after purchasing an additional 28,719 shares during the last quarter. Gabelli Funds LLC increased its holdings in McGrath RentCorp by 28.8% during the 4th quarter. Gabelli Funds LLC now owns 49,243 shares of the financial services provider's stock worth $5,167,000 after purchasing an additional 11,011 shares in the last quarter. Tributary Capital Management LLC bought a new stake in McGrath RentCorp during the 4th quarter worth approximately $9,063,000. Finally, Fifth Third Bancorp purchased a new stake in shares of McGrath RentCorp in the first quarter worth approximately $6,990,000. 92.05% of the stock is currently owned by institutional investors and hedge funds.

Insider Transactions at McGrath RentCorp

In other news, VP John Lieffrig sold 500 shares of the business's stock in a transaction that occurred on Friday, June 26th. The stock was sold at an average price of $125.00, for a total transaction of $62,500.00. Following the completion of the sale, the vice president owned 23,551 shares in the company, valued at $2,943,875. The trade was a 2.08% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Joseph F. Hanna sold 7,500 shares of the business's stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $120.64, for a total transaction of $904,800.00. Following the sale, the director owned 151,549 shares of the company's stock, valued at $18,282,871.36. This trade represents a 4.72% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 30,051 shares of company stock valued at $3,486,240. Company insiders own 1.40% of the company's stock.

McGrath RentCorp Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Friday, July 17th will be issued a $0.495 dividend. This represents a $1.98 dividend on an annualized basis and a yield of 1.7%. The ex-dividend date is Friday, July 17th. McGrath RentCorp's dividend payout ratio (DPR) is presently 31.88%.

Key Stories Impacting McGrath RentCorp

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

• Positive Sentiment: Rental operations revenue increased 6% year over year to $172.5 million, while TRS-RenTelco rental revenue rose 17% to $31.8 million. Management also plans to increase gross rental capital expenditures to $200 million-$220 million, signaling continued investment in fleet expansion and future rental growth. McGrath 2026 revenue and capital expenditure outlook
• Positive Sentiment: McGrath maintained a relatively constructive full-year outlook, forecasting 2026 revenue of $955 million-$985 million and adjusted EBITDA of $363 million-$375 million. The revenue range is broadly consistent with the $967.3 million analyst consensus, while the company declared a quarterly dividend of $0.495 per share. McGrath second-quarter 2026 results
• Neutral Sentiment: The higher rental capital spending could support long-term revenue growth, but it also represents a larger near-term cash investment. Management highlighted rental revenue growth and strategic initiatives during its earnings call. McGrath RentCorp Q2 2026 earnings call highlights
• Negative Sentiment: Second-quarter adjusted earnings were $1.37 per share, below estimates of approximately $1.46-$1.47 and unchanged from $1.46 a year earlier. Revenue fell 6% to $221.1 million, missing expectations of roughly $236.5 million, while net income declined to $33.7 million from $36.0 million. McGrath misses second-quarter earnings and revenue estimates
• Negative Sentiment: Sales revenue dropped 34% to $46.4 million, contributing to a 7% decline in operating income. The earnings shortfall and weaker overall revenue were the primary reasons for the negative investor reaction. McGrath RentCorp second-quarter revenue report

About McGrath RentCorp

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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