Proactive Investors - U-Haul Holding (NYSE:UHAL) reported a big profit miss in the first quarter of 2023, causing its stock to drop on Wednesday morning.
The haulage company reported first quarter earnings per share (EPS) of $0.16, $0.34 worse than the analyst estimates of $0.50 thanks to a big decline in its net earnings, which came in at $37.7 million versus the $86.7 million in the same period last year.
For the full year ended March 31, 2023, the company reported net earnings available to shareholders of $923 million, compared to $1.12 billion in the same period last year.
On a brighter note, revenue for the quarter was in line with estimates at $1.19 billion.
U-Haul said it had experienced a decrease in self-moving equipment rental revenues for both the fourth quarter and the full fiscal year. However, self-storage revenues saw a significant increase during the same periods, with a rise of 17% in the fourth quarter and 21% for the full year.
The company also added nearly six million net rentable square feet during fiscal 2023, representing a 12% increase.
Looking ahead, U-Haul expects an increase in capital expenditures for the rental fleet in fiscal 2024. The company reported cash and credit availability of $2,499.2 million as of March 31, 2023, compared to $2,723.2 million in the previous year.
Shares of U-Haul had fallen 8.5% at the start of trading on Wednesday at US$57.62.