WSC Earnings Prediction
The chart below shows how WSC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, WSC sees a -1.69% change in stock price 10 days leading up to the earnings, and a -3.26% change 10 days following the report. On the earnings day itself, the stock moves by -1.15%. This data can give you a slight idea of what to expect for the next quarter's release.
WSC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
602.51M
-1.61%
0.18%
Gross Margin
51.90%
-1.48%
4.62%
Operating Margin
29.00%
-2.42%
17.22%
Net Margin
14.81%
5.04%
-226.37%
EPS
0.46
4.55%
-224.32%
No Data Available
WSC Earnings Analysis
Willscot Mobile Mini Holdings Corp Corporation (WSC.O) Earnings Conference Call
Positive
Strategic Business Modernization: 2024 was a pivotal year for WillScot, marked by strategic changes that modernized the business and positioned it for continued scalable growth as North America’s largest provider of turnkey space solutions.
Record Revenue and EBITDA Growth: Despite end market challenges, the company delivered solid financial results, with full year revenue and adjusted EBITDA growth to record levels of $2.4 billion and $1.063 billion respectively.
Quarterly Cash Dividend Announcement: The company initiated a quarterly cash dividend for all shareholders, demonstrating confidence in its strategic growth outlook and resilience of cash flow.
Rental Rate Increases: Average monthly rental rates increased by 6% year-over-year for modular and 5% year-over-year for storage, helping to offset volume declines.
Strong Cash Flow Generation: Adjusted free cash flow for 2024 was $554 million, showcasing robust and sustainable cash flow generation.
Product Portfolio Expansion: The company expanded its product offerings through five acquisitions during the year, investing $121 million to enhance its portfolio.
Capital Allocation Success: WillScot's disciplined capital allocation strategy contributed to a 17% return on invested capital for 2024, reinforcing its ability to generate strong capital returns.
Operational Excellence Focus: The company is focused on improving commercial execution and operational excellence, which are expected to enhance forecast accuracy and overall financial results.
Negative
Earnings Miss Report: WillScot Holdings Corporation misses on earnings expectations, reporting an EPS of $0.4791 against expectations of $0.48.
Q4 Revenue Decline: Total revenue for Q4 declined by about 2% year-over-year, with leasing revenue down about 3%.
Volume Decline Analysis: Volumes were weaker, with modular activation volumes down low single digits compared to the prior year and storage activations down high single digits.
Non-Residential Construction Decline: Non-residential construction start square footage was down 2% year-over-year in Q4, following declines in the mid-teens for the last several quarters.
Customer Sentiment Caution: Despite some improvements in customer sentiment, the company is cautious about the impact of higher interest rates and tariff implications on customer spending.
Revenue Decline Forecast: First quarter revenues are expected to be down mid-single digits versus the prior year based on lower volumes entering the year.
Margin Compression Anticipation: The company anticipates margin compression in the first half of 2025 due to investments in additional sales team members.
Non-Residential Construction Outlook: There is uncertainty regarding non-residential construction demand, which could lead to a third consecutive year of contraction if trends do not improve.
WSC FAQs
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WSC Earning Call Sentiment
WillScot Holdings Corporation (NASDAQ:WSC) Q4 2024 Earnings Call Transcript
WSC.O
-5.52%Positive
The earnings call reveals a mixed sentiment. Financial performance shows slight declines in EPS and total revenue, but there are positive aspects like increased rental rates and robust cash flow generation. The Q&A highlights uncertainties in market demand and CapEx, which could impact cash flow and growth. Shareholder returns are positive with a new dividend and share repurchase program. However, the lack of clear guidance on modular units and potential headwinds in D&I revenues temper optimism. Overall, these factors suggest a neutral stock price reaction over the next two weeks.
