CTOS Earnings Prediction
The chart below shows how CTOS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CTOS sees a +3.11% change in stock price 10 days leading up to the earnings, and a +2.12% change 10 days following the report. On the earnings day itself, the stock moves by +0.47%. This data can give you a slight idea of what to expect for the next quarter's release.
CTOS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
520.74M
-0.19%
16.44%
Gross Margin
20.79%
-7.31%
13.86%
Operating Margin
9.03%
-18.21%
49.50%
Net Margin
5.30%
71.52%
-236.25%
EPS
0.12
71.43%
-271.43%
No Data Available
CTOS Earnings Analysis
Custom Truck One Source Inc Corporation (CTOS.N) Earnings Conference Call
Positive
Utility Demand Improvement: Custom Truck ended 2024 on a very positive note, with strong improvement in utility-related demand continuing through the end of the year.
Record Sales Achievement: GES had a record quarter in Q4 and a record year, exceeding a billion dollars in annual sales for the first time.
Strong Rental Demand Growth: Average OEC on rent for Q4 was over $1.2 billion, a 12% sequential quarterly increase, indicating strong rental demand.
Utilization Improvement in Q4: Average utilization for Q4 was just under 79%, a 570 basis points sequential improvement versus Q3, showing increased efficiency in operations.
Rental Revenue Growth: Rental revenue was up 15% versus Q3, marking the second consecutive quarter of sequential growth in rental revenue, a first since 2022.
Rental Activity Surge: The uptick in rental activity and customer optimism boosted rental asset sales, marking the third consecutive quarter of sequential improvement, with Q4 up 13% from Q3.
Record OEC Investment: Total OEC was just over $1.5 billion at the end of Q4, the highest quarter-end level, indicating strong investment in the rental fleet.
Record Quarterly Revenue Growth: Q4 was the strongest quarter of the year for the TES segment, with record quarterly revenue of over $300 million, up 18% sequentially.
Record Revenue Achievement: Full-year TES revenue exceeded $1 billion for the first time, up almost 7% versus 2023, demonstrating strong market demand.
Net Orders Surge 35%: In Q4, net orders increased by 35% compared to Q4 last year, indicating a positive trend in customer demand.
Inventory Reduction Success: Inventory management efforts resulted in a significant reduction in inventory of more than $150 million versus the end of Q3, improving operational efficiency.
Projected Revenue Growth: The company expects total revenue of between $1.97 and $2.06 billion for 2025, indicating anticipated growth across all segments.
2025 Adjusted EBITDA Projection: Projected adjusted EBITDA for 2025 is between $370 million and $390 million, reflecting strong financial performance expectations.
Negative
Customer Purchase Hesitation: High interest rates and economic caution influenced customer hesitation to buy, particularly noted in November.
ERS Revenue Decline: The ERS segment revenue decreased from $185 million in Q4 2023 to $172 million in Q4 2024, indicating a year-over-year decline despite sequential growth.
TES Segment Gross Margin Decline: Gross margin in the TES segment was down year-over-year, reflecting challenges in mix and inventory levels across the industry.
Seasonal Demand Volatility: The company experienced a typical seasonal decrease in OEC on rent and utilization in late December, which could indicate potential volatility in demand.
Order Intake Monitoring: Despite a strong Q4, the company is closely monitoring order intake due to customer hesitation and economic conditions.
CTOS FAQs
How does CTOS typically perform around its earnings report dates?
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CTOS Earning Call Sentiment
Custom Truck One Source, Inc. (NYSE:CTOS) Q4 2024 Earnings Call Transcript
CTOS.N
-0.21%Positive
The earnings call reveals strong financial metrics, such as a 15% revenue increase and improved utilization, but is offset by economic caution impacting customer behavior and a high net leverage ratio. The Q&A section indicates confidence in revenue growth, despite some competitive pressures and unclear responses on tariffs' impact. The sale-leaseback transaction positively affects debt reduction, but the incremental lease expense could negate some benefits. Overall, the mixed signals from strong financial performance and economic uncertainties lead to a neutral sentiment.
