WillScot (NASDAQ:WSC) Shares Gap Down After Earnings Miss

Key Points

• WillScot's** shares experienced a significant drop on Friday, opening at $23.27 after closing at $29.35, following a disappointing earnings report.
• The company's earnings per share (EPS) of $0.27 fell short of expectations by $0.09, while revenue for the quarter was $589.08 million, slightly exceeding analyst forecasts.
• Insider buying was noted, with CEO Bradley Soultz acquiring 10,000 shares at $26.79 each, indicating confidence in the company's potential amidst the earnings miss.

WillScot Holdings Corporation (NASDAQ:WSC - Get Free Report) shares gapped down prior to trading on Friday following a weaker than expected earnings announcement. The stock had previously closed at $29.35, but opened at $23.27. WillScot shares last traded at $24.88, with a volume of 1,130,674 shares changing hands.

The company reported $0.27 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.36 by ($0.09). The firm had revenue of $589.08 million for the quarter, compared to analysts' expectations of $587.07 million. WillScot had a return on equity of 26.28% and a net margin of 0.63%. The company's revenue for the quarter was down 2.6% on a year-over-year basis. During the same period in the prior year, the company earned $0.39 earnings per share.

WillScot Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 17th. Shareholders of record on Wednesday, September 3rd will be given a dividend of $0.07 per share. This represents a $0.28 annualized dividend and a yield of 1.1%. WillScot's payout ratio is currently 311.11%.

Wall Street Analysts Forecast Growth

WSC has been the topic of several recent analyst reports. Morgan Stanley upped their target price on shares of WillScot from $38.00 to $39.00 and gave the stock an "overweight" rating in a research report on Monday, May 12th. William Blair restated a "market perform" rating on shares of WillScot in a research report on Thursday, May 29th. Finally, Barclays lowered their target price on shares of WillScot from $40.00 to $34.00 and set an "equal weight" rating on the stock in a research report on Friday, April 4th. Five equities research analysts have rated the stock with a hold rating and five have issued a buy rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $40.63.

Insider Buying and Selling

In other WillScot news, CEO Bradley Lee Soultz bought 10,000 shares of the business's stock in a transaction dated Tuesday, May 6th. The shares were acquired at an average price of $26.79 per share, with a total value of $267,900.00. Following the purchase, the chief executive officer owned 128,817 shares in the company, valued at approximately $3,451,007.43. The trade was a 8.42% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Dominick P. Zarcone bought 10,000 shares of the business's stock in a transaction dated Tuesday, June 17th. The stock was acquired at an average cost of $26.19 per share, for a total transaction of $261,900.00. Following the purchase, the director owned 15,384 shares in the company, valued at approximately $402,906.96. This trade represents a 185.74% increase in their position. The disclosure for this purchase can be found here. Company insiders own 3.10% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the business. Baillie Gifford & Co. bought a new stake in shares of WillScot during the 1st quarter worth about $145,392,000. Vanguard Group Inc. raised its position in shares of WillScot by 11.7% during the 1st quarter. Vanguard Group Inc. now owns 18,338,511 shares of the company's stock worth $509,811,000 after buying an additional 1,924,653 shares in the last quarter. Invesco Ltd. raised its position in shares of WillScot by 747.1% during the 4th quarter. Invesco Ltd. now owns 1,820,316 shares of the company's stock worth $60,890,000 after buying an additional 1,605,436 shares in the last quarter. HG Vora Capital Management LLC bought a new stake in shares of WillScot during the 1st quarter worth about $38,920,000. Finally, D. E. Shaw & Co. Inc. raised its position in shares of WillScot by 1,246.2% during the 4th quarter. D. E. Shaw & Co. Inc. now owns 1,229,196 shares of the company's stock worth $41,117,000 after buying an additional 1,137,890 shares in the last quarter. 95.81% of the stock is owned by institutional investors and hedge funds.

WillScot Price Performance

The company has a current ratio of 0.83, a quick ratio of 0.76 and a debt-to-equity ratio of 3.56. The business's fifty day moving average is $28.53 and its 200 day moving average is $29.93. The firm has a market capitalization of $4.68 billion, a P/E ratio of 280.76, a P/E/G ratio of 1.65 and a beta of 1.24.

About WillScot

WillScot Holdings Corporation provides workspace and portable storage solutions in the United States, Canada, and Mexico. It operates in two segments, Modular Solutions and Storage Solutions. Its modular solutions include panelized and stackable offices, single-wide modular space units, section modulars and redi-plex, classrooms, ground level offices, blast-resistant modules, clearspan structures, and other modular space; and portable storage solutions, such as portable and cold storage containers, as well as trailers.

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