WillScot (WSC) can maintain its recent beat-and-raise pattern in its upcoming Q3 financial results, but the magnitude of the beat on profit may be limited once again by near-term upfront costs, as well as lower-margin delivery and installation revenue, UBS said in a Friday note.
The company has surpassed revenue guidance by around $30 million in the past two quarters, and revenue upside is likely compared with the company's guidance of $585 million and consensus estimates of $586 million, UBS analysts said. They model a more moderate upside of $594 million due to the mixed macro environment and limited visibility into activation trends.
With higher interest rates serving as an incremental headwind to an already challenging environment, the analysts said that "shares working in the near-term" after the Q3 results is unlikely.
UBS projects WillScot's Q3 earnings before interest, taxes, depreciation, and amortization at $236 million, above company guidance of $232 million and the consensus estimate of $233 million.
For 2026, the analysts forecast full-year revenue guidance increasing to $2.325 billion from $2.3 billion and adjusted earnings before interest, taxes, depreciation, and amortization guidance rising to $925 million from $920 million.
UBS maintained the company's stock rating at neutral and reduced the price target to $18 from $29.
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