How did HEES's Q4 earnings surprise impact investor sentiment?

H&E Equipment Services Inc (HEES) reported Q4 earnings that slightly missed expectations, with an EPS of $0.90, surpassing the estimated $0.80 but below the $1.47 of the same quarter last year. Despite the mixed earnings results, investor sentiment towards HEES appears to be positive, as evidenced by the following:

1. **Analyst Price Target and Consensus Rating**: The analyst price target for HEES in Q4 2024 was $92.50, indicating a potential upside from the current price. The consensus rating was "Neutral," which suggests that analysts do not see any major risks or opportunities at the moment.

2. **Stock Performance**: Following the earnings release, H&E Equipment Services' stock (HEES) experienced a minor decline of 1.14%, with a last price of $90.93. This reaction could be interpreted as investors adjusting their expectations after the earnings report.
3. **Investor Optimism**: Despite the challenges faced by HEES, including a decrease in sales of rental equipment and a decline in gross margins, the company's strategic initiatives and the potential acquisition by Herc Holdings Inc. have likely contributed to investor optimism. The agreement with Herc Holdings Inc. could lead to enhanced operational efficiencies and market presence, which may benefit HEES in the long term.
4. **Financial Achievements**: HEES's revenue exceeded estimates, and the company's rental fleet size expanded significantly. These achievements could have mitigated the impact of the earnings miss and supported investor confidence.

In conclusion, while HEES's Q4 earnings report revealed some weaknesses, the overall sentiment among investors appears to be positive, likely due to the company's strategic moves and the potential benefits of the acquisition.