Equipment rental company United Rentals (NYSE: URI) second quarter 2019 earnings results exceeded estimates. The company reported adjusted EPS of $4.74 on revenue of $2.29 billion. On average, analysts had estimated United Rentals to earn $4.46 per share on revenue of $2.27 billion.
Shares of United Rentals were down about 6% in the extended hours of trading as the company trimmed down the upper end of 2019 revenue outlook.
Total revenue for the recently ended quarter increased 21% to $2.29 billion and rental revenue increased 20% to $1.96 billion. GAAP earnings increased to $3.44 per share from $3.20 in the prior year quarter.
“Our updates to guidance reflect a slightly slower than expected pace for the BlueLine integration, as well as historically bad weather in several key regions this past quarter. As a result, we’ve trimmed the upper ends on total revenue and adjusted EBITDA by approximately 1%, and capex by $150 million, while raising our free cash flow expectation,” said Matthew Flannery, United Rentals’ new CEO, who succeeded Michael Kneeland on May 8, 2019.
United Rentals trimmed down the upper end of revenue and adjusted EBITDA outlook for 2019. The company now sees total revenue to be in the range of $9.15 billion to $9.45 billion versus the prior outlook of $9.15 billion to $9.55 billion. Adjusted EBITDA is now touted to be in the range of $4.35 billion to $4.5 billion compared to the previous estimate of $4.35 billion to $4.55 billion.
United Rentals’ fleet productivity for the quarter ended June 30, 2019, dropped 3.1% year-over-year, primarily due to the impact of the BakerCorp and BlueLine acquisitions.
In early June, United Rentals’ Board of Directors approved an enhanced capital allocation strategy. The Stamford, Connecticut-based company lowered its targeted leverage range to 2.0x-3.0x, from 2.5x-3.5x. The company expects to end the year with a net leverage ratio of approximately 2.5x versus a reported net leverage ratio of 2.9x as of March 31, 2019.
United Rentals stock has given a positive return of 28% since the beginning of this year. However, the stock had dropped 14% over the past 12 months period.
eBay Inc. (NASDAQ: EBAY) beat market estimates on revenue and earnings for the second quarter of 2019, sending the stock soaring 5.8% in aftermarket hours on Wednesday.
Total revenues of $2.68 billion were up 2% from the same period last year and ahead of the consensus estimate of $2.67 billion. Revenues grew 4% on a foreign exchange (FX) neutral basis.
Net income was $402 million, or $0.46 per share, compared to $642 million, or $0.64 per share, in the prior-year period. Adjusted EPS from continuing operations totaled $0.68, beating forecasts of $0.62.
Global active buyers totaled 182 million, up 4% from last year. Gross merchandise volume (GMV) was $22.6 billion, down 4%.
The Marketplace platforms delivered $2.2 billion in revenue, up 1% on a reported basis compared to the prior-year quarter. GMV dropped 5% on a reported basis to $21.5 billion. StubHub platforms posted revenue of $264 million, up 7%, and GMV of $1.1 billion, up 5% on a reported basis. Classifieds platforms delivered revenue of $271 million, up 5% on a reported basis.
eBay’s payments platform achieved over $270 million of GMV in the quarter, which reflects a quarter-over-quarter increase of 24%. In addition, over 940,000 sellers leveraged the company’s first-party advertising to promote over 250 million listings, yielding $89 million in revenue, which reflects a growth of over 130% year-over-year on a FX-Neutral basis.
For the third quarter, eBay expects net revenue of $2.61 billion to $2.66 billion, reflecting organic FX-neutral growth of 1-3%. GAAP EPS from continuing operations is expected to be $0.40-0.44 while adjusted EPS from continuing operations is estimated to be $0.62-0.65.
For full-year 2019, the company expects net revenue of $10.75 billion to $10.83 billion, reflecting organic FX-neutral growth of 2-3%. GAAP EPS from continuing operations is expected to be $1.97-2.07 and adjusted EPS from continuing operations is estimated to be $2.70-2.75.
eBay reached an agreement to sell its flash sale German business brands4friends. The company is also reviewing the value of StubHub and Classifieds in its portfolio to determine its best options for enhancing shareholder value.
eBay declared a cash dividend of $0.14 per common share, payable on September 20, 2019 to shareholders of record as of September 3, 2019.
Skechers, Inc. (NYSE: SKX) has been an investors’ favourite due to its positive earnings surprises…
Honeywell International Inc. (NYSE: HON) is set to report second quarter 2019 earnings results on…
Health insurance giant UnitedHealth (NYSE: UNH) will be announcing its second-quarter financial results Thursday before…
Abbott Laboratories’ (NYSE: ABT) second quarter earnings topped estimates, while revenue came in line with…
Be the first to know If the company will miss, meet or beat its target with the most accurate corporate and earnings calendar.
Missed the call, don’t worry! Check out our archived audio library to hear what the management said and the analyst asked.
Catch the nuances in the call, research what the management and analysts feel about the future? Read it all here!
Get 8-K, 10-K, 10-Q SEC filings for the companies you research with keyword search or our filtering options.