We've Got Our First Look at Results for This Holding
Plus, earnings from PulteGroup and Herc Holdings are good for several Portfolio positions.
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Equity futures indicate the market could give back some of its recent gains when it opens later on Tuesday morning. Folks are digesting quarterly earnings beats from General Motors GM, 3M MMM, GE Aerospace GE, Danaher DHR and others. Adding to recent comments from KB Home KBH and Lennar LEN for an improving housing market, PulteGroup PHM delivered a top- and bottom-line beat on Tuesday morning. During Pulte’s earnings call on Tuesday morning, we’ll be listening for management’s comments on deliveries for the balance of the year and what that means for our construction-related holdings, including Builders FirstSource BLDR.
Herc Holdings Shows Continued Strength
Equipment rental company Herc Holdings HRI delivered mixed September quarter results that included record rental equipment revenue. On the earnings call, we’ll be listening to see how recent hurricanes may have limited further upside for that revenue stream.
Supporting our thinking for United Rentals URI, Vulcan Materials VMC and Waste Management WM, Herc listed its equipment rental revenue growth to 9.5% to 11% for this year, up from its prior guidance of 7% to 10%.
First Look at Lockheed’s Results
Rounding out Tuesday morning’s earnings reports, Lockheed Martin LMT delivered a mixed bag with September quarter EPS that crushed expectations but fell modestly short of its top-line performance. Reported EPS came in at $6.84 for the quarter versus the $6.50 consensus on revenue of $17.10 billion compared to the $17.38 billion consensus. During the September quarter, Lockheed delivered 48 F-35s, marking the first set of deliveries this year. Backlog existing in the September quarter stood at $165.7 billion, up from $158.3 billion at the end of June.
While Lockheed lifted its 2024 EPS outlook to $26.65 from its prior guidance range of $26.10 to $26.60, during the earnings call our focus will be on the ramp of F35 production and how that feeds into Lockheed’s overall multiyear delivery forecast. It’s that multiyear delivery forecast we’ve been waiting for to revisit our LMT price target. Based on what we learn on the earnings call, we’ll make any needed revisions.
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At the time of publication, TheStreet Pro Portfolio was long BLDR, URI, VMC, WM and LMT.
