Nesco Holdings, Inc. (NSCO) Misses Q4 EPS by 2c, Revenues Beat; Offers FY20 Revenue Guidance Above Consensus

Nesco Holdings, Inc. (NYSE: NSCO) reported Q4 EPS of $0.06, $0.02 worse than the analyst estimate of $0.08. Revenue for the quarter came in at $77.2 million versus the consensus estimate of $68 million.

Lee Jacobson, Chief Executive Officer of Nesco, said, "The fourth quarter capped off another year of solid growth for Nesco. Our core specialty rental equipment remains in high demand in each of our end-markets, as evidenced by more than 8% year-over-year equipment rental revenue growth in the fourth quarter, excluding the impact from Truck Utilities and another quarter of record equipment on rent, which is also up more than 8% year-over-year in the fourth quarter. Parts, tools and accessories segment revenue increased more than 70% on a year-over-year basis in the fourth quarter, excluding Truck Utilities, driven by a combination of new regional locations and increased spend within our equipment rental customer base."

"Demand within our core electrical transmission and distribution, telecom and rail end markets remain robust," continued Jacobson. "Our largest contractor customers reported another quarter of record, or near record, revenue backlogs in our core end markets and our average customer rental contract period exceeded 13 months for most of 2019, a record for Nesco. Looking ahead, we expect 2020 will be a period of strong growth for our business. Our recent investment in new fleet will allow us to capture many previously lost rental opportunities due to equipment availability. We will also benefit from the investment we made in expanding our parts, tools and accessories service locations from two to seven in 2019 and one additional expected in 2020; and a full year of contribution from the Truck Utilities acquisition. We plan to take a measured approach toward capital spending in 2020 in order to generate positive free cash flow, reduce leverage and focus on maintaining high fleet utilization."

GUIDANCE:

Nesco Holdings, Inc. sees FY2020 revenue of $330-360 million, versus the consensus of $298 million.

For earnings history and earnings-related data on Nesco Holdings, Inc. (NSCO) click here.

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