United Rentals Earnings: Here’s Why the Stock is Down Now
United Rentals, Inc. (NYSE:URI) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.94%.
United Rentals, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 69.7% to $1.12 in the quarter versus EPS of $0.66 in the year-earlier quarter.
Revenue: Rose 21.45% to $1.21 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: United Rentals, Inc. reported adjusted EPS income of $1.12 per share. By that measure, the company beat the mean analyst estimate of $1.01. It missed the average revenue estimate of $1.23 billion.
Quoting Management: Michael Kneeland, chief executive officer of United Rentals, said, “Our strong second quarter performance reflects our commitment to a strategy of profitable and disciplined growth.”
Kneeland continued, “We invested over $730 million in fleet purchases in the second quarter to fill customer orders, especially key accounts, and prepare for peak season demand. We feel comfortable about achieving our full year outlook on rate, total revenue, EBITDA and free cash flow, while continuing to reduce our leverage.”
Key Stats (on next page)…