Why Mobile Mini's Shares Are Dropping

Why Mobile Mini's Shares Are Dropping

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: Shares of portable storage company Mobile Mini fell as much as 20% in early trading after reporting earnings.

So what: Revenue rose 4.6% from a year ago to $97.5 million but fell short of Wall Street's $99.2 million consensus estimate. On an adjusted basis earnings per share were $0.25, a penny worse than estimates.

Now what: During the quarter the company took a $40.3 million impairment to liquidate assets that were non-core or too expensive to repair. This helped it improve utilization but didn't help the top-line results. I'll definitely be sitting out the drop today because 4.6% growth just isn't enough to get me excited about a company trading at 35 times earnings.

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The article Why Mobile Mini's Shares Are Dropping originally appeared on Fool.com.

Fool contributor Travis Hoium 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 may not 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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