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 -1.03% change in stock price 10 days leading up to the earnings, and a +0.88% change 10 days following the report. On the earnings day itself, the stock moves by +0.76%. 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
447.22M
2.96%
5.72%
Gross Margin
18.26%
-18.95%
-2.51%
Operating Margin
6.04%
-35.88%
8.63%
Net Margin
-3.89%
-284.36%
-32.82%
EPS
-0.07
-275.00%
-30.00%
No Data Available
CTOS Earnings Analysis
Custom Truck One Source, Inc. Corporation (CTOS.N) Earnings Conference Call
Positive
OEC on Rent Increase: 1. Increased OEC on Rent: The company's OEC on rent improved to over $1.2 billion by the end of Q3, marking a significant increase of $145 million from the previous quarter.
Rental Utilization Improvement: 2. Strong Rental Utilization Rates: Utilization rates exceeded 79% in Q4, reflecting a recovery and improvement of over 800 basis points compared to Q2.
Rental Revenue Increase: 3. Sequential Growth in Rental Revenue: The rental revenue saw a sequential increase of 5% in Q3 compared to Q2, indicating a positive trend in rental activity.
TES Segment Revenue Growth: 4. Robust Demand in TES Segment: The TES segment experienced a 13% year-over-year revenue growth in Q3, contributing to a strong performance across various end markets.
Adjusted EBITDA Projections: 5. Positive Adjusted EBITDA Guidance: The company projects adjusted EBITDA between $340 million and $350 million for 2024, indicating confidence in continued financial performance.
Negative
Utilization Rate Decline: 1. Decline in Average Utilization: Average utilization of the rental fleet decreased to just over 73% from almost 79% year-over-year, negatively impacting rental revenue.
ERS Revenue Decline: 2. Year-over-Year Revenue Drop in ERS Segment: The ERS segment reported revenue of $150 million in Q3, down from $167 million in the same quarter last year, indicating a decline in performance.
Declining On-Rent Yield: 3. Lower On-Rent Yield: On-rent yield fell to over 38% in Q3, down from almost 41% in Q3 of 2023, driven by a mix of equipment and broader market conditions.
Increased ABL Borrowings: 4. Increased Borrowings Under ABL: Borrowings under the Asset-Based Lending (ABL) facility rose to $628 million, an increase of $41 million from the previous quarter, primarily due to lower-than-anticipated adjusted EBITDA performance.
Revenue Guidance Reduction: 5. Reduced Revenue Guidance: The company lowered the top end of its ERS revenue guidance by $25 million and the TES revenue outlook by $75 million, reflecting ongoing market challenges.
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CTOS Earning Call Sentiment
Custom Truck One Source, Inc. (CTOS) Q3 2024 Earnings Call Transcript
1.0x
00:00
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CTOS.N
-5.89%Positive
The earnings call summary presents a mixed outlook. Financial performance shows declines in revenue, gross profit, and EBITDA, with increased borrowings and lower utilization. Guidance is lowered across several segments, indicating challenges ahead. The Q&A reveals pricing pressures and uncertainties in used markets, with unclear responses on growth drivers. No shareholder return plan is mentioned, and competitive pressures, regulatory issues, and economic factors pose risks. While TES revenue shows growth, overall sentiment leans negative due to financial declines, reduced guidance, and lack of shareholder returns, suggesting a potential stock price decline of -2% to -8%.