Category

Business

Category

STAMFORD, Conn. – United Rentals , Inc. (NYSE:URI) reported third-quarter earnings that fell short of analyst expectations, sending shares down 3.3% in after-hours trading on Wednesday.

The equipment rental company posted adjusted earnings per share of $11.80, missing the consensus estimate of $12.56. Revenue came in at $3.99 billion, slightly below the $4.01 billion analysts were expecting.

Despite the miss, United Rentals saw solid YoY growth, with total revenue increasing 7.4% to $3.992 billion. Rental revenue, which makes up the bulk of the company’s business, rose 7.4% to $3.463 billion.

“We were pleased with our record third-quarter results, which were in-line with our expectations and reflected continued growth across both our construction and industrial end-markets,” said CEO Matthew Flannery.

The company narrowed its full-year 2024 guidance ranges while maintaining the midpoints. United Rentals now expects total revenue of $15.1 billion to $15.3 billion, compared to its previous forecast of $15.05 billion to $15.35 billion.

Adjusted EBITDA is projected to be between $7.115 billion and $7.215 billion for the year. The company also expects net cash provided by operating activities of $4.40 billion to $4.80 billion.

United Rentals’ fleet productivity, a key metric, increased 3.5% YoY in Q3. The company’s net income margin decreased 100 basis points to 17.7%, primarily due to increased selling, general and administrative expenses.

While the quarterly results missed estimates, United Rentals maintained an optimistic outlook on long-term trends. “Longer-term, we remain optimistic on the multiple secular tailwinds we see, particularly across large projects,” Flannery added.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

This post appeared first on investing.com