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On Wednesday post-market, shares of U-Haul (NYSE:UHAL) fumbled as the company reported fiscal Q3 earnings that fell short of Street expectations, raising concerns among investors.
The consolidated revenue, encompassing moving & storage, self-storage, property management fees, and equipment rental, saw a 3% decline to $1.34B, aligning approximately with forecasts.
However, an uptick in depreciation expense for rental equipment and real estate led to the company posting a profit of just $0.51 per share, signaling a stark 50% drop from the previous year and trailing Street expectations by $0.31.
Addressing the outlook, Chairman Joe Shoen remarked, “We continue to see pockets of modest growth in certain markets and product lines…Serving present moving and self-storage customers well is our surest bet to secure more business.”
Within these segments, fiscal Q3 showcased a 10% uptick in revenue from self-storage, amounting to $20M, whereas revenue from self-moving equipment rental witnessed a 6.6% dip, sliding to $59M.
Moreover, EBITDA for fiscal Q3 plummeted by 3.6% to $1.68B, with earnings from operations seeing a sharp 10% decline, settling at $1.1B.
The aftermath was palpable as U-Haul (UHAL) shares nosedived by more than 8% following the closing bell on Wednesday.
