Why Mobile Mini Shares Popped

Updated

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.

Shares of portable storage specialist Mobile Miniclimbed 10% today after its quarterly results topped Wall Street expectations

The stock has soared over the past year on significantly improving fundamentals, and today's first-quarter beat -- adjusted EPS of $0.27 on revenue of $97.9 million versus the consensus of $0.22 and $94.0 million -- suggests that the momentum isn't slowing. In fact, it was the company's ninth consecutive quarter of comparable-period growth in leasing revenues, reinforcing optimism over continued EBITDA margin expansion.


Looking ahead, the company expects to post comparable period growth in leasing revenues through the rest of 2013. "We see additional opportunity to increase our utilization as we more deeply penetrate our existing markets and expand into new ones," said President and CEO Erik Olsson. "We have a great team of dedicated people focused on delivering outstanding service to our customers, and I am looking forward to working with them as we take Mobile Mini into its next phase of growth."

With the stock now up about 150% over its 52-week lows and trading at a 20-plus forward P/E, however, I'd wait for some of the excitement to fade before buying into that growth.

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

The article Why Mobile Mini Shares Popped originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Mobile Mini. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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