Heavy equipment company H&E Equipment Services, of Baton Rouge, reported today a net income of $5.6 million, or 16 cents per diluted share, for the first quarter of 2016, down from the $6.1 million, or 17 cents per diluted share, reported one year ago, according to the company’s first quarter 2016 report.
Still, total revenues increased 8.6% to $247 million, up from $227.4 million a year ago. The company reports increases in rental revenues, new equipment sales, and parts and service revenues.
According to Nasdaq, the company beat Wall Street expectations. Analysts at Thomson Reuters had forecast the company to earn 9 cents per share.
H&E CEO John Engquist says the company’s revenues are the result of ongoing strength in its rental business and an unexpected increase in demand from its distribution business.
Rental revenues increased 1.4%, or $1.4 million, compared to $102.8 million a year ago.
“Non-residential construction activity in our end user markets, especially the industrial sector, remains strong. Demand for rental equipment continued to increase during the quarter compared to a year ago and as we anticipated, rates remained near year ago levels,” Engquist says in a statement.
The CEO does admit that H&E’s rental business, particularly its earthmoving equipment and cranes, did face some challenges from heavy rains that occurred in Louisiana, Texas and Arkansas, and the continued weakness in the oil patch.
“As we move further into 2016, our outlook remains positive as the non-residential construction markets we serve remain healthy,” Engquist says. “Our Gulf Coast market has continued to be the sweet spot for our business due to the high levels of industrial activity, new non-residential construction starts and demand from a wide array of the large capital projects breaking ground.”
—Alexandria Burris
