- Ashtead‘s first-quarter revenue was $2.80 billion, matching estimates of $2.78 billion.
- Rental revenue for the quarter was reported at $2.60 billion.
- The company achieved an Ebitda of $1.26 billion, slightly below the estimate of $1.29 billion.
- Adjusted pretax profit came in at $552 million, compared to an expected $568 million.
- Operating profit was $641.8 million, falling short of the $671.8 million estimate.
- Adjusted earnings per share (EPS) were 95.3 cents, below the 99.2 cents forecast.
- Management reaffirmed their revenue and capital expenditure (capex) guidance for the year.
- The company raised its free cash flow guidance.
- Analyst recommendations include 9 buys, 8 holds, and 1 sell.
Ashtead on Smartkarma
Analysts on Smartkarma are bullish on Ashtead according to research by Baptista Research. In their report titled “AHT LN – Why This Capital-Efficient Powerhouse Is Pushing Hard For Specialty and Mega Projects?,” they highlight Ashtead Group plc’s solid third-quarter performance. Despite anticipated lower used equipment sales, the company saw a 5% year-on-year increase in both group and U.S. rental revenues, leading to stable total revenues.
The report mentions that Ashtead achieved a record EBITDA of $3.9 billion and a profit before tax (PBT) of $1.7 billion. This positive outlook indicates confidence in Ashtead‘s ability to navigate varying market conditions and pursue growth opportunities in specialty and mega projects.
A look at Ashtead Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Ashtead Group Plc, an international equipment rental company, is positioned for long-term growth as indicated by its Smartkarma Smart Scores. With a solid Growth score of 4, the company is expected to expand steadily over time. This growth potential is further supported by its Resilience score of 3, illustrating the company’s ability to weather market fluctuations. Ashtead‘s Momentum score of 5 highlights its strong upward trajectory, signaling strong performance in the near future.
While the Value and Dividend scores are more moderate at 2, Ashtead‘s focus on growth and momentum, backed by its resilient operations, positions it well for the future. The company’s strategic presence in the US and the UK through its subsidiaries, Sunbelt Rentals and A-Plant respectively, provides a strong foundation for continued success in the equipment rental industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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