H&E Equipment Services Inc. on Wednesday reported third-quarter profit of $10.1 million, or 28 cents per share, down from $28.4 million, or 79 cents a share, it earned for the same period in 2019.
Officials with the Baton Rouge-based heavy equipment sales and rental company, said their business saw a drop in rental revenue and new equipment sales. The construction industry has taken a hit during the coronavirus pandemic, with projects being delayed or put on hold.
Revenue from equipment rentals dropped from $184.8 million in the third quarter of 2019 to $149.4 million, a 19.1% decrease. Revenue from new equipment sales fell from $65 million in 2019 to $37.2 million, a 42.7% drop. Revenue from used equipment sales was up by 28.3% from $31.2 million to $40 million.
H&E fell just short of Wall Street expectations for the quarter. The Zacks Consensus Estimate projected a quarterly profit of 29 cents a share.
“The current environment could further increase the secular shift toward renting equipment versus owning, creating greater opportunities for us to increase market share,” said Brad Barber, H&E president and chief executive officer.
Total revenue for H&E dropped by 18.1% from $353 million to $289.3 million. Expenses related to sales, general and administrative costs fell by 9.4% from $77.3 million to $70 million.
Shares of H&E were down 81 cents, or 3.8% in early afternoon trading at $20.63.