Why Mobile Mini's Shares Got Crushed

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Portable storage solutions provider Mobile Mini (NAS: MINI) saw its shares sink 10% today after issuing a disappointing earnings report.

So what: Revenue grew 6% from a year ago to $87.9 million and non-GAAP net income rose 6% to $5.4 million, or $0.12 per share. The problem is that the market was expecting revenue to be $89.1 million and earnings per share $0.18.

Now what: Slower-than-expected lease revenue growth was blamed for the earnings miss, but there were some positive signs. Yields were up from last year and utilization appears to be on an uptick as well. The market is expecting a big increase in earnings once we leave this seasonally weak quarter, and I'm cautious that the company's lease revenue will continue to drag on earnings. I'll sit out today and wait for better momentum in financials before jumping in.

Interested in more info on Mobile Mini? Add it to your watchlist byclicking here.

At the time thisarticle was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Motley Fool newsletter services have recommended buying shares of Mobile Mini. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

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