Custom Truck One Source Inc (CTOS) surged 33.08% on Wednesday, defying expectations as the company's stock price soared even after reporting mixed fourth-quarter earnings results.
The leading provider of specialized truck and heavy equipment solutions reported revenue of $520.74 million for the quarter ended December 31, 2024, slightly lower than analysts' expectations of $543.34 million. Additionally, the company's adjusted earnings per share (EPS) of $0.02 missed the consensus estimate of $0.04.
Despite the earnings miss, investors seem to be focusing on Custom Truck One Source's overall financial performance and growth prospects. The company reported a net income of $27.57 million for the quarter, and analysts maintain a "buy" rating on the stock, with a median 12-month price target of $5.50. The positive analyst outlook and the company's growth potential appear to have outweighed the earnings disappointment, driving the stock's significant surge on Wednesday.