Custom Truck One Source (CTSO) Earnings Preview: What to Watch for on October 30th
Investors are gearing up for Custom Truck One Source’s (CTSO) upcoming quarterly earnings report, scheduled for Wednesday, October 30th. This release is highly anticipated, with investors eager to see if the company can surpass analyst expectations and deliver positive guidance for the next quarter.
Analyst Estimates and Past Performance
Analysts are projecting an earnings per share (EPS) of -$0.03 for CTSO. While this doesn’t seem promising, it’s crucial to remember that guidance can be a significant driver of stock price movements. Investors will be paying close attention to the company’s outlook for the future.
In the previous quarter, CTSO missed EPS estimates by $0.09, resulting in a 12.66% drop in the share price the following day. This serves as a reminder of the potential impact of earnings reports on stock performance.
A Look at CTSO’s Past Performance
Here’s a quick breakdown of CTSO’s past performance and the corresponding stock price changes:
| Quarter | EPS Estimate | EPS Actual | Price Change % |
|—|—|—|—|
| Q2 2024 | -0.01 | -0.10 | -13.0% |
| Q1 2024 | -0.01 | -0.06 | -15.0% |
| Q4 2023 | 0.11 | 0.07 | -18.0% |
| Q3 2023 | 0.05 | 0.04 | -18.0% |
Share Price Analysis
As of October 28th, CTSO shares were trading at $3.56. Over the past 52 weeks, the stock has declined by 38.95%. These negative returns suggest a bearish sentiment among long-term shareholders heading into the earnings release.
Analyst Views and Market Sentiment
Understanding market sentiment and expectations is crucial for investors. The consensus rating for CTSO is ‘Outperform’, based on 1 analyst rating. The average one-year price target of $6.0 implies a potential 68.54% upside.
Comparative Analysis with Competitors
To gain further insights into CTSO’s performance expectations, let’s compare its analyst ratings and price targets with those of its industry peers: BlueLinx Hldgs, Xometry, and MRC Global.
| Company | Consensus Rating | Average 1-Year Price Target | Potential Upside |
|—|—|—|—|
| BlueLinx Hldgs | Buy | $136.0 | 3720.22% |
| Xometry | Outperform | $24.5 | 588.2% |
| MRC Global | Buy | $15.0 | 321.35% |
Key Takeaways from Peer Analysis
CTSO lags behind its peers in terms of revenue growth, gross profit, and return on equity. These metrics indicate that the company might be facing challenges in profitability and financial efficiency.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|—|—|—|—|—|
| Custom Truck One Source | Outperform | -7.40% | $89.27M | -2.79% |
| BlueLinx Hldgs | Buy | -5.83% | $122.44M | 2.20% |
| Xometry | Outperform | 19.45% | $52.88M | -4.31% |
| MRC Global | Buy | -4.48% | $173M | 4.72% |
Discovering Custom Truck One Source
Custom Truck One Source Inc. is a comprehensive provider of specialty equipment, catering to the electric utility transmission and distribution, forestry, telecom, waste management, rail, and infrastructure markets in North America. The company operates in three main segments: Equipment Rental Solutions (ERS), Truck and Equipment Sales (TES), and Aftermarket Parts and Services (APS). The TES segment contributes the largest portion of the company’s revenue, and the United States is its primary source of revenue generation.
A Deep Dive into CTSO’s Financials
Market Capitalization Analysis:
CTSO’s market capitalization falls below industry benchmarks, indicating a smaller scale relative to its peers. This could be attributed to factors such as growth expectations or operational capacity.Revenue Challenges:
CTSO’s revenue growth has faced difficulties over the past three months. As of June 30th, 2024, the company experienced a decline of approximately -7.4%, indicating a decrease in top-line earnings. This growth rate is lower than the average among peers in the Industrials sector.Net Margin:
CTSO’s net margin is below industry benchmarks, suggesting potential challenges in achieving strong profitability. With a net margin of -5.79%, the company may need to focus on improving cost control measures.Return on Equity (ROE):
CTSO’s ROE falls below industry averages, highlighting difficulties in effectively utilizing equity capital. An ROE of -2.79% indicates challenges in generating optimal returns for shareholders.Return on Assets (ROA):
CTSO’s ROA is below industry benchmarks, indicating potential difficulties in efficiently utilizing assets. An ROA of -0.7% suggests challenges in generating satisfactory returns from its assets.Debt Management:
CTSO’s debt-to-equity ratio is significantly higher than the industry average, with a ratio of 2.85. This indicates a greater reliance on borrowed funds and suggests a higher level of financial risk for the company.Key Takeaways
CTSO is facing challenges in revenue growth, profitability, and efficient capital utilization. The company’s financial performance lags behind its peers in the industry. Investors will be looking for signs of improvement and a clear roadmap for future growth in the upcoming earnings report.
To track all earnings releases for Custom Truck One Source, visit their earnings calendar on our site.
