- United Rentals reported a first quarter adjusted EPS of $8.86, which exceeded estimates of $8.66 but was lower compared to $9.15 year-over-year (y/y).
- The company’s revenue increased by 6.7% y/y to $3.72 billion, surpassing the estimated $3.6 billion.
- Rental revenue rose by 7.4% y/y to $3.15 billion, surpassing expectations of $3.07 billion.
- Service and other revenue saw a modest increase of 2.2% y/y, reaching $91 million, just below the estimated $92.7 million.
- Contractor Supplies sales remained flat at $36 million, in line with the previous year, but below the estimated $37.4 million.
- There was a 1.6% decline in sales of rental equipment to $377 million, though this figure was above the estimate of $352.3 million.
- Sales of new equipment surged by 46% y/y to $70 million, significantly outperforming the estimate of $48.8 million.
- Adjusted EBITDA for the quarter was $1.67 billion, a 5.3% increase y/y, beating the forecast of $1.62 billion.
- Adjusted EBITDA margin was recorded at 44.9%, slightly below the previous year’s 45.5% and the estimated 45.1%.
- Analyst ratings for United Rentals include 12 buys, 8 holds, and 3 sells.
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United Rentals on Smartkarma
United Rentals has been under positive analyst coverage on Smartkarma, a platform where independent analysts publish their research. Baptista Research, a notable provider, released insights on the company’s performance. In a report titled “United Rentals: Will The Capital Expenditure & Fleet Optimization Be Able To Reinforce Its Market Position? – Major Drivers,” United Rentals reported strong fourth-quarter results, achieving record revenue and earnings. The company saw significant revenue and rental revenue growth, highlighting improved fleet productivity.
Baptista Research further emphasized United Rentals‘ success in another report titled “United Rentals Inc.: Enhanced Fleet Productivity & Other Major Drivers.” The analysis showcased the company’s robust third-quarter results, reinforcing confidence in its growth trajectory. United Rentals‘ strong financial health and strategic positioning for long-term value creation were highlighted in the report, with record performance in key financial metrics like total revenue and adjusted earnings per share. Overall, the analyst sentiment towards United Rentals remains bullish based on the insights provided.
A look at United Rentals Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
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. has received varied Smart Scores across different factors. With a strong Growth score of 4, the company seems positioned for expansion and development in the long term. This indicates potential for increasing market share and profitability over time.
While the Value and Dividend scores are modest at 2 each, suggesting average performance in terms of undervaluation and dividend yield, United Rentals displays commendable Resilience and Momentum scores of 3 each. This indicates the company’s ability to weather economic uncertainties and maintain a consistent growth trajectory, providing investors with confidence in its stability and upward movement in the future.
Summary: United Rentals, Inc., through its subsidiary, is an equipment rental company operating a network of locations in the United States and Canada. The Company serves the construction industry, industrial and commercial concerns, homeowners, and other individuals.
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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