Overview

• U-Haul fiscal Q2 revenue slightly misses analyst expectations

• Net earnings for fiscal Q2 fall to $105.6 mln from $186.8 mln last year

• Company faces increased fleet depreciation and equipment disposal losses

Outlook

• U-Haul plans to continue renting trucks despite federal green mandates changes

• Company sees ongoing fleet depreciation impacting future profits

Result Drivers

• FLEET DEPRECIATION - Increased fleet depreciation expense contributed to lower net earnings, according to Chairman Joe Shoen

• EQUIPMENT DISPOSAL LOSSES - Losses from the disposal of retired rental equipment accounted for a significant portion of the earnings decline

• REVENUE GROWTH - Revenues for major product lines, including self-moving equipment rentals and self-storage, increased year-over-year

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the ground freight & logistics peer group is "buy."

• Wall Street's median 12-month price target for U-Haul Holding Co is $77.61, about 31% above its November 4 closing price of $53.58

• The stock recently traded at 32 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release: ID:nBwhBFlza

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)