A drop in new crane sales and the oil industry’s continued struggles lowered Baton Rouge-based H&E Equipment Services’ third-quarter earnings to $14.8 million, or 42 cents per share.
A year ago, the company clocked a third-quarter profit of $15.3 million, or 43 cents per share.
Stock analysts surveyed by Thomson Reuters had forecast earnings of 41 cents per share.
H&E expects the weakness in new equipment sales and the oil industry to continue in the fourth quarter, Chief Executive Officer John Engquist said. As a result, the company is lowering its 2015 revenue estimate to a range of $1.028 billion to $1.037 billion.
The company had forecast revenue of $1.07 billion to $1.09 billion.
The company also lowered its 2015 guidance for earnings before income tax, depreciation and amortization — an indicator of financial performance — to between $315 million and $320 million. The company had projected EBITDA of $334 million to $352 million.
Despite the crane and energy industry’s weakness, Engquist said H&E’s business outlook remains positive because of the expected strength in commercial construction markets.
The third-quarter highlights included a 9.1 percent increase in rental revenue, Engquist said. H&E expects the solid demand in its industrial markets will continue into 2016, thanks to “the vast number” of major industrial projects along the Gulf Coast.
And the oil patch has stabilized, in terms of H&E’s exposure, he said.
H&E’s stock dipped 5 cents Thursday to $15.54.
Follow Ted Griggs on Twitter, @tedgriggsbr.