Oppenheimer Downgrades McGrath Rentcorp (MGRC) to Perform; Near-Term Pressure Persisting Through 2H12
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Price: $33.16 -0.27%
Rating Summary:
0 Buy, 2 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Rating Summary:
0 Buy, 2 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Trade MGRC Now!
Oppenheimer downgraded McGrath Rentcorp (NASDAQ: MGRC) from Outperform to Perform.
Analyst, Scott Schneeberger, said, "MGRC's 2Q12 EPS of $0.42 surprised to the downside vs. our estimate/consensus of $0.49/$0.48. Rental revenue growth slid to 5.7% y/y (following seven consecutive double-digit quarters) vs. our 7.5%. A return to double-digit top-line growth via Adler Tank Rental's long-term prospects, and an ultimate recovery from the currently stable Mobile Modular segment remain plausible. Rental revenue/EPS guidance for 2012 was lowered to 4-6% (from 8-10%)/$1.70-1.85 (-15% to -9%; from $2.00-2.12), respectively, implying further deceleration in 2H12 from 1H12. The primary culprit was a greater than anticipated slowdown in Adler's Northeast region, specifically at the Marcellus Shale."
FY12 EPS estimate lowered from $2.12 to $1.75 and FY13 from $2.40 to $1.94.
For an analyst ratings summary and ratings history on McGrath Rentcorp click here. For more ratings news on McGrath Rentcorp click here.
Shares of McGrath Rentcorp closed at $26.61 yesterday, with a 52 week range of $21.61-$33.35.
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Analyst, Scott Schneeberger, said, "MGRC's 2Q12 EPS of $0.42 surprised to the downside vs. our estimate/consensus of $0.49/$0.48. Rental revenue growth slid to 5.7% y/y (following seven consecutive double-digit quarters) vs. our 7.5%. A return to double-digit top-line growth via Adler Tank Rental's long-term prospects, and an ultimate recovery from the currently stable Mobile Modular segment remain plausible. Rental revenue/EPS guidance for 2012 was lowered to 4-6% (from 8-10%)/$1.70-1.85 (-15% to -9%; from $2.00-2.12), respectively, implying further deceleration in 2H12 from 1H12. The primary culprit was a greater than anticipated slowdown in Adler's Northeast region, specifically at the Marcellus Shale."
FY12 EPS estimate lowered from $2.12 to $1.75 and FY13 from $2.40 to $1.94.
For an analyst ratings summary and ratings history on McGrath Rentcorp click here. For more ratings news on McGrath Rentcorp click here.
Shares of McGrath Rentcorp closed at $26.61 yesterday, with a 52 week range of $21.61-$33.35.
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