United Rentals, Inc. (NYSE: URI) Earnings Report Analysis
- Earnings per Share (EPS) for Q3 2024 was $11.80, missing the estimated $12.56 by 5.52%.
- Revenue for the quarter was approximately $3.99 billion, slightly below the estimated $4.01 billion, marking a 6% year-over-year increase.
- Financial Ratios such as the price-to-earnings (P/E) ratio of 21.69 and a debt-to-equity ratio of 1.56 highlight the company's valuation and financial health.
United Rentals, Inc. (NYSE:URI) is a leading equipment rental company in North America, providing a wide range of rental equipment and services to various industries. The company operates in the Zacks Building Products - Miscellaneous industry, competing with other major players in the equipment rental sector. On October 23, 2024, URI reported its earnings, revealing key financial metrics that provide insight into its performance.
For the third quarter of 2024, United Rentals reported an earnings per share (EPS) of $11.80, which was below the estimated EPS of $12.56. This represents a negative surprise of 5.52%, as highlighted by Zacks. Despite this, the EPS showed a slight increase from $11.73 in the same quarter last year. In contrast, the previous quarter saw URI exceed expectations with an EPS of $10.70, surpassing the anticipated $10.48.
The company's revenue for the quarter was approximately $3.99 billion, slightly under the estimated $4.01 billion. This revenue figure marks a 6% increase compared to the same period last year, growing from $3.77 billion. However, it narrowly missed the Zacks Consensus Estimate by 0.05%. Over the past four quarters, United Rentals has exceeded consensus revenue estimates twice, indicating a mixed performance in meeting market expectations.
United Rentals' financial ratios provide further insight into its valuation and financial health. The company has a price-to-earnings (P/E) ratio of approximately 21.69, reflecting investor sentiment towards its earnings. Its price-to-sales ratio is about 3.74, and the enterprise value to sales ratio stands at 4.65, indicating how the market values its revenue and sales. The enterprise value to operating cash flow ratio is around 14.38, suggesting the market's valuation of its cash flow.
The company's debt-to-equity ratio is about 1.56, indicating a significant use of debt financing relative to its equity. Additionally, the current ratio is approximately 0.81, which may suggest potential liquidity challenges in meeting short-term obligations. These financial metrics highlight the importance of examining key metrics beyond just revenue and earnings to gain a deeper understanding of United Rentals' performance and potential future stock price movements.
| Symbol | Price | %chg |
|---|---|---|
| SKRN.JK | 432 | -0.46 |
| ASSA.JK | 725 | -4.83 |
| SMIL.JK | 210 | -0.95 |
| 089860.KS | 34600 | -1.16 |
United Rentals, Inc. (NYSE: URI) Overview and Analyst Sentiment
- The consensus price target for United Rentals (NYSE:URI) has decreased from $830.33 to $666 over the past year.
- United Rentals boasts a robust EBITDA margin of 46.7% and a diversified customer base, underscoring its market stability.
- Despite market fluctuations, United Rentals is considered an attractive investment, with a recent 10.7% increase in share price and a positive outlook from analysts.
United Rentals, Inc. (NYSE: URI) is a leading company in the equipment rental industry, providing a wide array of construction and industrial equipment. It operates through its General Rentals and Specialty segments, serving a diverse range of clients, including construction firms, industrial companies, and government entities. With 1,360 rental locations across the U.S., Canada, Europe, Australia, and New Zealand, United Rentals is a significant player in the market.
The consensus price target for United Rentals has seen a decline over the past year, dropping from $830.33 to $666. This shift may reflect changes in analysts' expectations or sentiment about the company's stock performance. Despite this, United Rentals remains a strong contender in the industry, with a fleet valued at $21.43 billion and a reported revenue of $15.3 billion for fiscal year 2024.
Market conditions and economic fluctuations can impact the demand for rental equipment, influencing analysts' outlook on United Rentals. The company's resilience to tariffs and appealing valuation have made it an attractive investment choice over competitors like Caterpillar. United Rentals' robust EBITDA margin of 46.7% and diversified customer base further support its stability in the market.
Industry trends, such as infrastructure projects and regulatory changes, can also affect United Rentals' business prospects. The company has minimal exposure to residential construction, with 94% of its branches located in the U.S. This strategic positioning helps mitigate risks associated with fluctuations in the residential construction sector.
The competitive landscape and shifts in market share can influence analysts' assessments of United Rentals' future performance. Despite a recent 10.7% increase in share price, analyst Ken Newman from KeyBanc has set a price target of $425 for the stock. This suggests a positive outlook for United Rentals, as highlighted by Zacks, which anticipates the company to surpass earnings estimates in its forthcoming report.
United Rentals, Inc. (NYSE: URI) Overview and Analyst Sentiment
- The consensus price target for United Rentals (NYSE:URI) has decreased from $830.33 to $666 over the past year.
- United Rentals boasts a robust EBITDA margin of 46.7% and a diversified customer base, underscoring its market stability.
- Despite market fluctuations, United Rentals is considered an attractive investment, with a recent 10.7% increase in share price and a positive outlook from analysts.
United Rentals, Inc. (NYSE: URI) is a leading company in the equipment rental industry, providing a wide array of construction and industrial equipment. It operates through its General Rentals and Specialty segments, serving a diverse range of clients, including construction firms, industrial companies, and government entities. With 1,360 rental locations across the U.S., Canada, Europe, Australia, and New Zealand, United Rentals is a significant player in the market.
The consensus price target for United Rentals has seen a decline over the past year, dropping from $830.33 to $666. This shift may reflect changes in analysts' expectations or sentiment about the company's stock performance. Despite this, United Rentals remains a strong contender in the industry, with a fleet valued at $21.43 billion and a reported revenue of $15.3 billion for fiscal year 2024.
Market conditions and economic fluctuations can impact the demand for rental equipment, influencing analysts' outlook on United Rentals. The company's resilience to tariffs and appealing valuation have made it an attractive investment choice over competitors like Caterpillar. United Rentals' robust EBITDA margin of 46.7% and diversified customer base further support its stability in the market.
Industry trends, such as infrastructure projects and regulatory changes, can also affect United Rentals' business prospects. The company has minimal exposure to residential construction, with 94% of its branches located in the U.S. This strategic positioning helps mitigate risks associated with fluctuations in the residential construction sector.
The competitive landscape and shifts in market share can influence analysts' assessments of United Rentals' future performance. Despite a recent 10.7% increase in share price, analyst Ken Newman from KeyBanc has set a price target of $425 for the stock. This suggests a positive outlook for United Rentals, as highlighted by Zacks, which anticipates the company to surpass earnings estimates in its forthcoming report.
United Rentals, Inc. (NYSE: URI) Earnings Report Analysis
- Earnings per Share (EPS) for Q3 2024 was $11.80, missing the estimated $12.56 by 5.52%.
- Revenue for the quarter was approximately $3.99 billion, slightly below the estimated $4.01 billion, marking a 6% year-over-year increase.
- Financial Ratios such as the price-to-earnings (P/E) ratio of 21.69 and a debt-to-equity ratio of 1.56 highlight the company's valuation and financial health.
United Rentals, Inc. (NYSE:URI) is a leading equipment rental company in North America, providing a wide range of rental equipment and services to various industries. The company operates in the Zacks Building Products - Miscellaneous industry, competing with other major players in the equipment rental sector. On October 23, 2024, URI reported its earnings, revealing key financial metrics that provide insight into its performance.
For the third quarter of 2024, United Rentals reported an earnings per share (EPS) of $11.80, which was below the estimated EPS of $12.56. This represents a negative surprise of 5.52%, as highlighted by Zacks. Despite this, the EPS showed a slight increase from $11.73 in the same quarter last year. In contrast, the previous quarter saw URI exceed expectations with an EPS of $10.70, surpassing the anticipated $10.48.
The company's revenue for the quarter was approximately $3.99 billion, slightly under the estimated $4.01 billion. This revenue figure marks a 6% increase compared to the same period last year, growing from $3.77 billion. However, it narrowly missed the Zacks Consensus Estimate by 0.05%. Over the past four quarters, United Rentals has exceeded consensus revenue estimates twice, indicating a mixed performance in meeting market expectations.
United Rentals' financial ratios provide further insight into its valuation and financial health. The company has a price-to-earnings (P/E) ratio of approximately 21.69, reflecting investor sentiment towards its earnings. Its price-to-sales ratio is about 3.74, and the enterprise value to sales ratio stands at 4.65, indicating how the market values its revenue and sales. The enterprise value to operating cash flow ratio is around 14.38, suggesting the market's valuation of its cash flow.
The company's debt-to-equity ratio is about 1.56, indicating a significant use of debt financing relative to its equity. Additionally, the current ratio is approximately 0.81, which may suggest potential liquidity challenges in meeting short-term obligations. These financial metrics highlight the importance of examining key metrics beyond just revenue and earnings to gain a deeper understanding of United Rentals' performance and potential future stock price movements.
