- United Rentals‘ 4th quarter adjusted EPS was $11.59, a slight miss against the estimate of $11.73, but an increase from $11.26 year-over-year.
- The company reported a revenue of $4.10 billion, which surpassed the estimate of $3.96 billion, marking a 9.8% increase year-over-year.
- Rental revenue reached $3.42 billion, beating the forecast of $3.34 billion, and showing a 9.7% increase compared to the previous year.
- Service and other revenue slightly missed estimates with $86 million, representing a 3.6% increase year-over-year against an expected $87.3 million.
- Contractor supplies sales were $39 million, surpassing the estimate of $37.6 million, reflecting an 8.3% year-over-year growth.
- Sales of rental equipment amounted to $452 million, considerably above the estimate of $424.8 million, with a 3.2% increase from the previous year.
- Sales of new equipment skyrocketed to $96 million, dramatically exceeding the $54.4 million estimate and showing an 85% increase year-over-year.
- Adjusted EBITDA stood at $1.90 billion, aligning closely with the $1.88 billion estimate, and growing by 5% from the previous year.
- The adjusted EBITDA margin was 46.4%, falling short of both the previous year’s 48.5% and the estimated 47.9%.
- Management expressed positive outlook supported by demand and customer optimism, signaling expectations for continued growth.
- Stock ratings include 11 buys, 8 holds, and 4 sells from analysts.
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United Rentals on Smartkarma
Analysts on Smartkarma, like those at Baptista Research, have been closely covering United Rentals Inc., a prominent equipment rental provider. In their report titled “United Rentals Inc.: Enhanced Fleet Productivity & Other Major Drivers,” the analysts highlighted the company’s robust Q3 2024 results, emphasizing the sustainability of its growth momentum. United Rentals‘ management showcased a strong argument for the firm’s financial health and reiterated its strategic focus on long-term value creation for shareholders. Record-breaking performance in key financial metrics such as total revenue, rental revenue, and adjusted earnings per share further underscored the company’s advantageous position.
In another insightful analysis by Baptista Research titled “United Rentals Inc.: An Analysis Of Their Acquisition-Led Growth & Competitive Advantage! – Major Drivers,” United Rentals was commended for its mixed yet resilient financial and operational standing. The company reported a significant increase in total revenue, a 6% year-over-year rise to $3.8 billion in Q2, with rental revenue climbing 8% to $3.2 billion. Analysts noted that this growth was supported by enhanced fleet productivity, which saw a notable improvement of 4.6%. This analysis sheds light on United Rentals‘ strategic direction and affirms its competitive advantage in the market.
A look at United Rentals Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 3 | |
| 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 set for a positive long-term outlook based on the Smartkarma Smart Scores analysis. With a strong Growth score of 4, the company is positioned for significant potential expansion and development in the coming years. Additionally, the Momentum score of 3 indicates a favorable trend in the company’s stock movement, further supporting its future prospects.
While the Value, Dividend, and Resilience scores are moderate, at 2 each, the higher scores in Growth and Momentum suggest a promising trajectory for United Rentals. As a prominent equipment rental company catering to various sectors including construction, industrial, commercial, and individual clients in the US and Canada, United Rentals appears to have a solid foundation for sustained growth and performance in the long run.
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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