- United Rentals has narrowed its full-year revenue forecast to between $14.1 billion and $14.3 billion, from the previous $14 billion to $14.3 billion. The estimated revenue was $14.2 billion.
- The company forecasts its adjusted Ebitda to range from $6.78 billion to $6.88 billion, slightly adjusted from the previous forecast of $6.75 billion to $6.9 billion. The estimated Ebitda was $6.82 billion.
- The company maintains its projections for free cash flow, which is anticipated to be between $2.30 billion and $2.50 billion. The estimated free cash flow was $2.38 billion.
- Cash from operating activities is still expected to be between $4.5 billion and $4.8 billion.
- In the third quarter, the company reported an adjusted EPS of $11.73, compared to $9.27 year-over-year. The estimated EPS was $11.30.
- Revenue for the third quarter was $3.77 billion, marking a 23% increase year-over-year. The estimated revenue was $3.69 billion.
- Rental revenue for the quarter was $3.22 billion, an 18% increase year-over-year. The estimated rental revenue was $3.23 billion.
- Service and other revenue amounted to $84 million, a 14% increase year-over-year. The estimated revenue from service and others was $82.2 million.
- Contractor Supplies sales were $39 million, marking a 22% increase year-over-year. The estimated sales were $35.3 million.
- Sales of rental equipment amounted to $366 million, significantly higher than the estimated $45 million.
- Sales of new equipment were $52 million, a 63% increase year-over-year. The estimated sales were $291.4 million.
- The company’s adjusted Ebitda for the quarter was $1.85 billion, a 22% increase year-over-year. The estimated Ebitda was $1.83 billion.
- The adjusted Ebitda margin was 49.1%, compared to 49.9% year-over-year. The estimated margin was 49.6%.
- The company reaffirms its 2023 outlook, citing continued strength in its markets and a strategy that positions it well for the future.
United Rentals on Smartkarma
Analysts covering United Rentals on Smartkarma, an independent investment research network, have a bullish sentiment on the company’s long-term prospects. Vladimir Dimitrov, CFA, in his research report “United Rentals: Be Mindful Of Short-Term Risks, But Don’t Lose The Long-Term Focus,” states that the share price of United Rentals is not expensive as profitability and utilization rates remain strong. He notes that near-term risks should not be ignored, but United Rental remains a solid long-term opportunity.
The research report goes on to say that the company is performing well despite the risk of a recession. It emphasizes that investors should remain focused on the long-term prospects of United Rentals, while paying attention to the short-term risks. By considering both the short-term and long-term risks, investors can make a more informed decision about investing in United Rentals.
A look at United Rentals Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.6 |
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 a leading equipment rental company in the United States and Canada. The company provides a wide range of rental solutions to its customers in the construction industry, industrial and commercial concerns, homeowners, and other individuals. According to Smartkarma Smart Scores, United Rentals has a long-term outlook that is worth noting. The company has a solid growth score of 4, reflecting its ability to continue to grow and expand its network of locations. Additionally, the company has a strong momentum score of 4, which indicates that it is able to maintain its current momentum into the future. Despite its strong growth and momentum scores, United Rentals has a weaker value score of 2 and resilience score of 2, which suggests that investors should be cautious when investing in the company.
Overall, United Rentals has a good long-term outlook. Its strong growth and momentum scores indicate that the company is well-positioned for future success. However, investors should be aware of the company’s weaker value and resilience scores, as they may be indicative of potential risks in the future. With careful consideration of the company’s overall outlook, investors can make informed decisions when investing in United Rentals.
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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