Heavy rains helped put a damper on construction machinery supplier H&E Equipment Services’ fourth-quarter profit.
The Baton Rouge-based firm reported earnings of $12 million, or 34 cents per share, compared with $16.7 million, or 47 cents per share, a year ago.
For the year, H&E reported its profit slipped to $44.3 million, or $1.25 per share, compared with $55.1 million, or $1.56 per share, in 2014.
Both the quarter and annual results fell short of Wall Street’s expectations. Stock analysts surveyed by Zacks Investment Research forecast fourth-quarter earnings of 41 cents per share and $1.34 for the year.
H&E Chief Executive Officer John Engquist said the company delivered solid results despite “turmoil in the oil patch, the historic flooding that occurred in May, and the exceptional rainfall” in many markets during the fourth quarter.
The company’s revenue fell 8.2 percent to $273.2 million for the quarter and 4.6 percent to $1.04 billion for the year, as sales of new and used equipment fell.
However, equipment rentals increased for the quarter and the year.
Engquist said uncertainty over the economy’s direction will help increase equipment rentals as customers hold off on major purchases.