- United Rentals‘ adjusted earnings per share (EPS) for the third quarter were $11.80, slightly up from $11.73 a year ago, but below the estimate of $12.47.
- The company’s revenue for the quarter was $3.99 billion, a 6% increase year-over-year, but missed the estimate of $4.01 billion.
- Rental revenue stood at $3.46 billion, marking a 7.4% rise year-over-year and meeting the estimate.
- Service and other revenue increased by 11% year-over-year to $93 million, surpassing the estimate of $89.4 million.
- Contractor Supplies sales were $38 million, representing a 2.6% decline from the previous year and falling short of the $41.3 million estimate.
- Sales of rental equipment were $321 million, down 12% year-over-year, and below the expected $358 million.
- Sales of new equipment surged by 48% to $77 million, significantly exceeding the estimate of $51.2 million.
- Adjusted EBITDA for the quarter was $1.90 billion, a 2.9% increase from the prior year, but below the estimate of $1.94 billion.
- The adjusted EBITDA margin was 47.7%, down from 49.1% a year ago, and also below the projected 48.5%.
- The company has refined its outlook ranges for various financial metrics but upheld the mid-points of its 2024 forecast.
- Analyst recommendations include 11 buys, 6 holds, and 5 sells for the company’s stock.
United Rentals on Smartkarma
Analysts at Baptista Research on Smartkarma have been closely monitoring United Rentals Inc., a company focused on acquisition-led growth and competitive advantage. In their recent research reports, the analysts highlighted the company’s strong financial performance and strategic direction. United Rentals reported a significant increase in total revenue, rising by 6% year-over-year to $3.8 billion in the second quarter. Rental revenue also climbed by 8% to $3.2 billion, supported by a 4.6% improvement in fleet productivity.
In another report by Baptista Research, United Rentals‘ solid mergers and acquisitions strategy was examined. The company’s latest earnings results showed a strong performance in Q1, with total revenue growing by 6% year-over-year to reach $3.5 billion. Rental revenue increased by 7% and fleet productivity showed a promising 4% improvement. Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) reached a first-quarter record of $1.6 billion, with a margin of 45.5%, while adjusted Earnings per Share (EPS) rose by 15% to $9.15. The analysts maintain a bullish outlook on United Rentals, emphasizing its growth potential and financial strength.
A look at United Rentals Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
United Rentals, Inc. is positioned for a promising long-term outlook based on the Smartkarma Smart Scores. Their growth and momentum scores of 4 and 5 respectively indicate strong positive trends for the company, showcasing potential for expansion and increasing market favor. These scores suggest that United Rentals is on a path towards sustainable growth and profitability in the future.
Although United Rentals received lower scores for value, dividend, and resilience, with 2s across the board, the higher scores in growth and momentum overshadow these aspects. Given the company’s focus on the construction industry and its extensive network in the U.S. and Canada, United Rentals remains well-positioned to leverage its strengths and capitalize on future opportunities in the equipment rental sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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