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Thursday, Sep 28, 2023

Electro Rent Narrowly Misses Expectations

Electro Rent Corp. narrowly missed Wall Street earnings estimates for its fiscal third quarter despite increased revenue. The Van Nuys company reported net income of $5.04 million (21 cents a share) in the quarter ended Feb. 28, compared with $4.99 million (21 cents) in the same period a year earlier. Revenue increased 7.6 percent to $64.7 million. The consensus estimate was for earnings of 23 cents a share, according to Thomson/First Call. The company, which leases and sells test equipment for computer networks and other markets, said customers were cautious in the quarter as they waited to see the outcome of Capitol Hill sequester negotiations before committing to purchase equipment. “Even so, several of our rental market segments grew, and our used-equipment sales business benefited during the quarter,” said Chief Executive and Chairman Daniel Greenberg in a statement. “Our data products business remained steady during the period.” Shares lost 40 cents, or more than 2 percent, to close at $18.08 on the Nasdaq.

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