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UHAL NYSE· U-Haul Holding Company
Earnings report Q4 2023

U-Haul Holding Company Reports Decline in Revenue for Q3 2024

Segments of Revenue

U-Haul Holding Company, in its latest financial quarter, reported a decline in consolidated revenue compared to the same quarter of the previous year. The breakdown of revenue by major product lines for the quarter ended December 31, 2023, and the quarter ended December 31, 2022, is as follows:

  • Self-moving equipment rental revenues: $839.8 million in Q3 2024, compared to $898.8 million in Q3 2023.
  • Self-storage revenues: $210.5 million in Q3 2024, compared to $190.5 million in Q3 2023.
  • Self-moving and self-storage products and service sales: $70.3 million in Q3 2024, compared to $74.9 million in Q3 2023.
  • Property management fees: $10.1 million in Q3 2024, compared to $10.1 million in Q3 2023.
  • Life insurance premiums: $22.6 million in Q3 2024, compared to $24.4 million in Q3 2023.
  • Property and casualty insurance premiums: $26.5 million in Q3 2024, compared to $26.9 million in Q3 2023.
  • Net investment and interest income: $57.5 million in Q3 2024, compared to $52.3 million in Q3 2023.
  • Other revenue: $102.2 million in Q3 2024, compared to $97.6 million in Q3 2023.
  • Consolidated revenue: $1.34 billion in Q3 2024, compared to $1.38 billion in Q3 2023.

Strengths

Despite the decline in consolidated revenue, U-Haul Holding Company demonstrated strength in several areas. Self-moving equipment rental revenues, which constitute a significant portion of the company's revenue, remained robust at $839.8 million in Q3 2024. The company's net investment and interest income also increased to $57.5 million, reflecting successful investment strategies. Management attributed the growth in this segment to favorable market conditions and effective cost management.

Challenges

U-Haul Holding Company faced challenges in its self-storage segment, with revenues increasing to $210.5 million in Q3 2024 compared to $190.5 million in Q3 2023. This slower growth rate may be attributed to increased competition in the self-storage industry, impacting the company's ability to capture a larger market share. Additionally, the decline in self-moving equipment rental revenues from $898.8 million in Q3 2023 to $839.8 million in Q3 2024 suggests a potential decrease in demand for U-Haul's rental services.

Noteworthy

It is worth noting that U-Haul Holding Company experienced a decline in consolidated revenue for the quarter ended December 31, 2023, compared to the same quarter of the previous year. This decline can be attributed to lower revenues in the self-moving equipment rental and self-moving and self-storage products and service sales segments. However, the company's net investment and interest income showed positive growth, indicating successful investment strategies.

Summary

U-Haul Holding Company reported a decline in consolidated revenue for the third quarter of fiscal 2024 compared to the same quarter of the previous year. While the self-moving equipment rental segment remained strong, the company faced challenges in its self-storage segment. The increase in net investment and interest income highlights the company's effective investment strategies. U-Haul Holding Company should focus on addressing the challenges in the self-storage segment and adapting to changing market dynamics to drive future revenue growth.

Source documents

Form 10-Q  filed on Feb 07, 2024
154 pages scanned

Reference data

Company financials Q4 revenue 1.34B
Analyst estimates Q4 EPS missed by NaN%
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