- Revenue Miss: Ashtead‘s revenue for the first quarter totaled $2.75 billion, falling short of the estimated $2.79 billion.
- Rental Revenue: The company reported $2.54 billion in rental revenue.
- EBITDA: Earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at $1.29 billion, slightly above the estimate of $1.27 billion.
- Operating Profit: Ashtead‘s operating profit was $688.3 million, surpassing the estimate of $677.6 million.
- Adjusted EPS: Adjusted earnings per share (EPS) were 97.4 cents, exceeding the estimate of 96.0 cents.
- Company Comments:
- The company stated, “We have started the year well and expect full-year results will be in line with our expectations.”
- The company also noted, “As expected, lower used equipment sales and a higher increase in depreciation and interest costs, resulted in adjusted profit before taxation of $573 million (2023: $615 million).”
- Analyst Ratings: Ashtead received 15 buy ratings, 6 hold ratings, and 1 sell rating.
A look at Ashtead Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Ashtead Group Plc, the international equipment rental company, appears to have a positive long-term outlook based on the Smartkarma Smart Scores. With a Growth score of 4, the company showcases strong potential for expansion and development in the future. Additionally, the Momentum score of 3 suggests that Ashtead is gaining speed in the market, showing promising movement forward. While the Value, Dividend, and Resilience scores are more moderate, the higher scores in Growth and Momentum components indicate a favorable trajectory for Ashtead in the coming years.
Ashtead Group Plc operates in the US and the UK, renting out construction and industrial equipment through its subsidiaries Sunbelt Rentals and A-Plant, respectively. The company’s revenue primarily stems from the US, where Sunbelt Rentals has an extensive network of 388 locations. With A-Plant boasting 106 locations across the UK, Ashtead has a solid foundation for continued growth and success in the equipment rental industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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