McGrath RentCorp reports Q2 EPS $1.46, consensus $1.22

Reports Q2 revenue $235.6M, consensus $220.71M. Joe Hanna, CEO of McGrath, made the following comments: “We were pleased with our second quarter results. The 11% increase in companywide revenues was driven by higher rental operations and sales revenues. Modular rental revenues increased 5% compared to last year, with growth across both commercial and education customer bases, despite softer market demand conditions than a year ago. Given current utilization levels, we reduced new equipment capital spending and focused on preparing available fleet to satisfy new shipments which increased operating expenses for the quarter. Our modular services offerings contributed to growth, and our Enviroplex business had a strong quarter of new modular sales in the education market. Demand conditions in Portable Storage showed some improvement compared to the first quarter, with rental revenues growing 5% sequentially, though down 5% from a year ago. Lower commercial construction project activity continued to make demand conditions challenging. TRS-RenTelco had a strong quarter, with rental revenues up 7% over last year. Consistent with the first quarter, improvement in market demand conditions was broad-based across customer segments. We were pleased with our execution in the second quarter and encouraged by several positive signs in the overall demand environment, despite some ongoing economic uncertainty. Overall, our outlook is incrementally more positive as we enter the second half of the year, and we remain focused on disciplined operational execution to make the most of the market opportunities.”