RB Global Earnings: GTV Guidance Trimmed Because of Weaker Pricing, but Profit Margins Remain Strong

Shares of narrow-moat-rated RB Global moved higher on Aug. 6 after the market digested the firm’s second-quarter earnings results and revised 2024 guidance. Total revenue of $1.1 billion fell roughly 1% year over year and missed the FactSet consensus estimate by roughly 3%. Nevertheless, adjusted EBITDA margin expanded 350 basis points year over year to 31.2%, and adjusted EPS of $0.94 was about 8% above the consensus estimate. After updating our valuation model for management’s revised guidance, we’ve maintained our $57 per share estimate for New York Stock Exchange-listed shares. We’ve increased our fair value estimate for Toronto Stock Exchange-listed shares about 1% due to a modestly higher USD/CAD exchange rate.