• United Rentals‘ 1Q adjusted earnings per share (EPS) came in at $9.15, beating the estimated $8.40 and marking an increase from the previous year’s $7.95.
• The company reported a revenue increase of 6.1% year-over-year (y/y) to $3.49 billion, exceeding estimates of $3.44 billion.
• Rental revenue grew by 6.9% y/y to $2.93 billion, surpassing the estimated $2.9 billion.
• Service and other revenue saw a 13% y/y rise to $89 million, higher than the estimated $82.7 million.
• Contractor Supplies sales increased by 5.9% y/y to $36 million, slightly exceeding estimates of $35.1 million.
• United Rentals sold a significant $383 million worth of rental equipment, much more than the estimated $44.6 million.
• Sales of new equipment came in at $48 million, a 9.1% y/y increase, defying estimates of $377.6 million.
• Adjusted Ebitda was $1.59 billion, a 5.6% y/y growth, beating the estimate of $1.55 billion.
• Adjusted Ebitda margin was 45.5%, slightly lower than the previous year’s 45.8%, but higher than estimates of 45.1%.
• For fiscal 2024, Yak is forecasted to provide a total revenue of approximately $300 million, adjusted EBITDA of around $140 million, operating cash flow of about $150 million, and free cash flow of roughly $50 million. Yak is also expected to add around $100 million of gross rental purchases to the company’s portfolio.
• According to Flannery, 2024 is meeting expectations, with updated full-year guidance reflecting the addition of Yak.
• Current analyst ratings for United Rentals stand at 9 buys, 7 holds, and 5 sells.
United Rentals on Smartkarma
On Smartkarma, a platform for independent investment research, analysts from Baptista Research have been closely covering United Rentals. In their report titled “United Rentals Inc: Increased Used Equipment Sales & Other Major Drivers,” the analysts shed light on the company’s record-breaking performance in the latest earnings report. President and CEO Matt Flannery emphasized the company’s customer-centric operational approach and safety measures that led to exceptional results in revenue, earnings, and returns. This positive sentiment underscores the strategic acquisition and integration efforts driving United Rentals‘ success.
In another report by the same analysts titled “United Rentals Inc.: Here Are The 3 Biggest Risks The Company Faces! – Major Drivers,” United Rentals‘ stellar performance in the recent quarter is highlighted with a remarkable 23% year-over-year surge in total revenue, exceeding $3.8 billion. The company’s Adjusted EBITDA also saw a significant increase of 22%, reaching $1.85 billion with a strong margin above 49%. The analysts point out the importance of adding personnel strategically to effectively integrate acquired companies into United Rentals, showcasing a bullish outlook on the company’s future despite potential risks.
A look at United Rentals Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 4 | |
| 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 set for a promising long-term outlook based on the Smartkarma Smart Scores assessment. With a stellar Growth score of 5, the company is projected to see robust expansion opportunities ahead. Combined with a Momentum score of 4, United Rentals shows strong positive price trends, indicating investor interest and potential stock price growth. While Value and Dividend scores stand at 2, pointing to moderate value and dividend attractiveness, the Resilience score of 2 suggests a moderate ability to weather market volatility. Overall, United Rentals’ outlook seems bright, particularly driven by its impressive Growth and Momentum scores.
As an equipment rental company catering to various sectors including construction, industrial, and commercial markets, as well as individual homeowners, United Rentals is positioned for continued growth and stability. Smartkarma Smart Scores reflect a favorable outlook, emphasizing the company’s potential for advancement and market performance. With a solid Growth score leading the pack, United Rentals is poised to seize opportunities in the rental industry. Investors may find United Rentals an appealing prospect for long-term investment growth given its positive ratings in Growth and Momentum.
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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