- October 3, 2021
- Comments: 0
- Posted by: admin
Baton Rouge-based H&E Equipment Services Inc. reported second quarter earnings of $15.8 million, or 43 cents per share, compared to $8.8 million, or 24 cents per share, during the same period a year ago.
Baton Rouge-based H&E Equipment Services Inc. reported second quarter earnings of $15.8 million, or 43 cents per share, compared to $8.8 million, or 24 cents per share, during the same period a year ago.
Baton Rouge-based H&E Equipment Services Inc. reported second-quarter earnings of $15.8 million, or 43 cents per share, compared to $8.8 million, or 24 cents per share, during the same period a year ago.
The company, which leases and sells heavy equipment, posted second-quarter revenue of $315.8 million, up from $278.3 million a year earlier.
Brad Barber, chief executive officer of H&E, said the company is transitioning to a “pure-play equipment rental business.” Two weeks ago, the company said it was selling off its crane business for $130 million, due to declining demand in the oil and gas industry. That transaction is expected to close at the end of the year. The company has an agreement to sell two earthmoving distribution branches in Arkansas.
Revenue will go toward expanding the rental fleet and growing H&E’s branch operations. The company has more than 100 locations across the U.S. and plans to open a rental-only branch in greater Little Rock, Arkansas.
Rental revenue in the second quarter was $160.3 million, up from $140.8 million a year ago. At the same time, new equipment sales were $49.9 million, up from $43.9 million, and used equipment sales went from $34 million to $41.4 million.
Barber said he’s optimistic about the second half of the year, due to improving utilization, rising rental rates and fleet growth.
“Customer inquiries addressing current equipment needs remain strong and we expect the elevated demand to persist for the foreseeable future,” he said. Non-residential construction is expected to expand into 2022.
The quarterly results beat expectations. Analysts projected the company would report earnings of 40 cents per share on revenue of $300.7 million for the quarter.
Shares of H&E were down 43 cents in midmorning trading, at around $33.60 a share. H&E Equipment shares have climbed 14% since the beginning of the year. The stock has risen 94% in the last 12 months.
Email Timothy Boone at tboone@theadvocate.com.
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