General Finance (GFN) posted a quarterly profit of $ 0.14 per share, exceeding Zacks' consensus estimate of $ 0.11 per share. This compares to a profit of $ 0.08 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents a profit surprise of 27.27%. There is a quarter, it was expected that this mobile storage, liquid containment and modular space business owner will record a loss of $ 0.01 per share while 39, he made a profit of 0.08 dollar, a surprise of 900%.
In the last four quarters, the company has exceeded consensus EPS estimates three times.
General Finance, which is part of the Zacks Business Services segment, reported revenues of $ 97.99 million for the quarter ended December 31, 2018, which is 6.86% above the Zacks consensus. This compares with revenues of $ 92.13 million a year ago. The company has exceeded four times the revenue estimated by consensus over the past four quarters.
The sustainability of the immediate stock price movement based on recently published figures and future earnings forecasts will depend primarily on management's feedback on the call for results.
General Finance shares have lost about 6% since the beginning of the year, compared to 8% for the S & P 500.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "What's next for general finances?"data-reactid =" 28 ">What's next for general finances?
While General Finance has underperformed the market since the beginning of the year, the question for investors is: what is the next step for the stock?
There is no simple answer to this key question, but the company's earnings outlook is a reliable measure to help investors. This includes not only the current consensus results for the coming quarters, but also how these forecasts have changed recently.
Empirical research shows a strong correlation between short-term stock movements and trends in revisions to earnings estimates. Investors can track these revisions themselves, or rely on a proven scoring tool such as Zacks Rank, which has impressive experience operating the revision of earnings power estimates.
Prior to the release of these results, the trend of estimated revisions for General Finance was favorable. Although the magnitude and direction of the revisions may change after the release of the company's earnings report, the current status results in a Zacks # 2 (Purchase) ranking for the stock. As a result, equities are expected to outperform the market in the near future. You can see the complete list of # 1 Zacks stock at current rank (strong buy) here.
It will be interesting to see how the estimates for the coming quarters and the current fiscal year will change in the coming days. The consensus estimate of EPS is currently $ 0.09 on revenue of $ 89.60 million for the next quarter and $ 0.33 on revenue of $ 374.35 million for the fiscal year. In progress.
Investors should be aware that the outlook for the sector can also have a significant impact on the performance of the security. In terms of rank in the Zacks industry, Business – Services currently ranks in the top 38% of 250 companies and more than Zacks. Our research shows that the top 50% of industries ranked by Zacks perform better than the bottom 50% by a factor greater than 2 to 1.
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