H&E Equipment Services, Inc. (HEES) Tops Q4 EPS by 2c

H&E Equipment Services, Inc. (NASDAQ: HEES) reported Q4 EPS of $0.47, $0.02 better than the analyst estimate of $0.45. Revenue for the quarter came in at $297.8 billion versus the consensus estimate of $279.5 billion.

“The fourth quarter represented a strong conclusion to a banner year for our company as we continued to successfully capitalize on the accelerating recovery in commercial construction markets,” said John Engquist, H&E Equipment Services’ chief executive officer. “Our rental business is performing extremely well, with revenues increasing 22.6% in the fourth quarter compared to last year, as we continue to experience solid demand in all of our end user markets. As a whole, 2014 was a strong year for our business as total revenues and EBITDA increased 10.4% and 22.0%, respectively, as compared to last year. Our solid EBITDA growth for the year was driven by a 19.2% year-over-year increase in rental revenue combined with average time utilization of 72.2% and our ability to achieve continued rate increases.”

Engquist concluded, “We believe healthy growth opportunities will continue into 2015, driven by momentum in the non-residential construction markets and increasing industrial expansion in Louisiana and Texas. While there is concern that reduced oil prices may negatively impact the anticipated expansion in Louisiana and Texas, many projects are expected to continue as a result of low natural gas prices. In addition, oil and gas activities only accounted for approximately 13% of our total revenues in 2014, with the vast majority of our equipment being used in oil production rather than exploration, which historically has been less sensitive to changes in the price of oil. Finally, we believe any adverse impact from decreased oil patch activity may be mitigated by increased activity in other industries as a result of lower fuel prices. We believe our outlook is positive based on the current trends we see in our business, recent discussions with our customers and the solid outlook for the construction markets.”

For earnings history and earnings-related data on H&E Equipment Services, Inc. (HEES) click here.

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