Ashtead Group Q3 Earnings Miss Estimates, Revenues Decrease Y/Y

Ashtead Group plc ASHTY reported adjusted earnings of 77 cents per share in third-quarter fiscal 2025 (ended Jan. 31, 2025), which were 5% lower than the year-ago quarter. ASHTY’s earnings per American Depositary Receipt (ADR) were $3.09. The metric missed the Zacks Consensus Estimate of $3.47 per share. Each Ashtead Group ADR represents four ordinary shares.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Ashtead Group Witnesses Higher Rental Revenues in Q3The company reported net revenues of $2.57 billion, down 3.4% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $2.62 billion.Rental revenues increased 1% year over year to $2.38 billion. The sale of new equipment, merchandise and consumables declined 3.4% year over year to $79 million. The sale of used rental equipment plunged 50.8% to $108 million.U.S. total revenues fell 3.4% year over year to $2.2 billion in the fiscal third quarter. Revenues in Canada decreased 6.9% to $158 million and U.K. revenues fell 0.2% to $207.5 million.U.S. rental-only revenues were 1.1% higher than a year ago. Canada’s rental-only revenues increased 0.4%, whereas the U.K. saw a 1% increase in rental revenues.ASHTY’s Q3 Operating Profit DeclinesTotal operating costs slipped 6.2% year over year to $1.39 billion. The adjusted operating profit dipped 6.9% year over year to $550 million. Adjusted operating margin contracted 81 basis points to 21.4%. EBITDA rose 0.2% year over year to $1.17 billion due to higher depreciation and amortization. The EBITDA margin was 45.6% compared with the year-ago quarter’s 44%.Ashtead Group’s Q3 Cash Position & Balance SheetThe company reported cash and cash equivalents of $25.8 million as of Jan. 31, 2025, compared with $22.4 million as of Jan. 31, 2024. It generated $1.19 billion in cash from operating activities in the first nine of fiscal 2025 compared with $0.01 billion in the prior-year period. The free cash flow for the first nine months of fiscal 2025 was $858 million against $463 million in the prior-year period.ASHTY’s net debt was $10.61 billion at the end of the quarter, down from $11.17 billion at the end of the prior-year quarter. Ashtead Group’s net debt to adjusted EBITDA ratio was 1.7X as of Jan. 31, 2025, compared with 1.9X as of Jan. 31, 2024.ASHTY Lowers Outlook for Canada Rental Revenues in FY25Ashtead Group expects total rental revenues to rise 3-5% in fiscal 2025. It expects U.S. rental revenues to increase 2-4%. U.K. rental revenue growth is likely to be 3-6%. Canada rental revenues are expected to rise 9-13% compared with the previously mentioned 15-19%. The capital expenditure for fiscal 2025 is anticipated to be $2.5 -$2.7 billion.Ashtead Group Stock’s Price PerformanceThe company’s shares have lost 11.7% in the past year compared with the industry’s 10.8% decline.  Image Source: Zacks Investment Research ASHTY’s Zacks RankAshtead Group currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Ashtead Group’s Peer PerformancesGlobal Industrial Company GIC reported earnings of 27 cents per share in fourth-quarter 2024 and missed the Zacks Consensus Estimate of 28 cents. The bottom line decreased 32.5% from the year-ago quarter’s earnings of 40 cents.Global Industrial recorded net revenues of $302 million in the reported quarter, down 5.6% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $306 million.W.W. Grainger, Inc. GWW recorded adjusted earnings per share of $9.71 in fourth-quarter 2024, missing the Zacks Consensus Estimate of $9.75. Grainger reported fourth-quarter 2023 EPS of $7.89, including the adjustment for the loss on the sale of Grainger's subsidiary, E&R Industrial Sales, Inc., completed in the said quarter.Grainger’s quarterly revenues rose 5.9% year over year to $4.23 billion. However, the top line missed the Zacks Consensus Estimate of $4.24 billion. Daily sales increased 4.2% from the prior-year quarter. We predicted daily sales to increase 3.8%.Hillenbrand, Inc. HI registered adjusted earnings per share of 56 cents in the first quarter of fiscal 2025, beating the Zacks Consensus Estimate of 54 cents. HI posted earnings of 69 cents in the year-ago quarter.The company reported revenues of $707 million compared with the prior quarter’s $773 million. The top line surpassed the Zacks Consensus Estimate of $695 million.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report W.W. Grainger, Inc. (GWW): Free Stock Analysis Report Hillenbrand Inc (HI): Free Stock Analysis Report Global Industrial Company (GIC): Free Stock Analysis Report Ashtead Group PLC (ASHTY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks