- United Rentals reported an adjusted EPS of $10.47, slightly below last year’s figure of $10.70 but exceeding the estimate of $10.45.
- Total revenue increased by 4.5% to $3.94 billion, surpassing the $3.9 billion estimate.
- Rental revenue grew by 6.2% to $3.42 billion, exceeding the anticipated $3.35 billion.
- Service and other revenue rose by 5.6% to $95 million, surpassing the estimate of $93.6 million.
- Contractor supplies sales decreased by 2.4% to $41 million, falling short of the $43 million estimate.
- Sales of rental equipment dropped by 13% to $317 million, less than the estimate of $345.9 million.
- Sales of new equipment increased by 23% to $75 million, outperforming the $63.7 million estimate.
- Adjusted EBITDA grew by 2.3% to $1.81 billion, beating the estimate of $1.79 billion.
- The adjusted EBITDA margin stood at 45.9%, down from last year’s 46.9%, and below the estimated 46%.
- The company attributes growth to success in both general rentals and specialty businesses, alongside positive customer outlooks and backlogs.
- A $400 million increase in planned share repurchases is announced, supported by expected additional free cash flow in 2025.
- Analyst recommendations include 13 buys, 8 holds, and 2 sells.
United Rentals on Smartkarma
Independent analysts on Smartkarma have provided upbeat coverage of United Rentals, a company in the industrial and construction equipment rental industry. Baptista Research published two research reports on United Rentals, expressing a bullish sentiment towards the company’s growth prospects. In one report titled “Can United Rentals Capitalize On The Specialty Growth Opportunities?”, they highlighted the company’s strong performance in the first quarter, achieving record revenue numbers driven by robust customer activity, especially in its Specialty segment.
The second report from Baptista Research titled “United Rentals: Will The Capital Expenditure & Fleet Optimization Be Able To Reinforce Its Market Position? – Major Drivers” further emphasized United Rentals‘ success in the fourth quarter, with record revenue, EBITDA, and EPS. The analysts pointed out the company’s significant revenue and rental revenue growth, indicating a positive outlook on United Rentals‘ market position and capital expenditure strategies.
A look at United Rentals Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
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. operates as an equipment rental company with an extensive network across the United States and Canada. Catering to various sectors like construction, industrial, commercial, and individual customers, the company has a solid foundation. Looking at its Smartkarma Smart Scores, United Rentals shows promising signs for long-term growth with notably high scores in Growth and Momentum, showcasing potential for future expansion and positive market performance.
Although the company scores moderately in Value and Dividend, key factors like Resilience are rated higher, indicating a level of stability and adaptability in uncertain market conditions. With a balanced overall outlook based on the Smart Scores, United Rentals seems poised for continued advancement in its sector, backed by its established presence and favorable growth and momentum indicators.
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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