Categories Earnings, Industrials

United Rentals Q1 profit falls 4% but beats estimates

United Rentals (NYSE: URI) reported a 4% decline in earnings for the first quarter of 2019 due to higher interest expense associated with debt issued to fund the BakerCorp and BlueLine acquisitions. However, strong volume growth and improvements in rental rates drove revenue higher by 22%. The results exceeded analysts’ expectations. The company reaffirmed its 2019 revenue and adjusted EBITDA outlook.

Net income decreased 4.4% to $175 million while earnings rose 2% to $2.19 per share helped by lower weighted average shares outstanding. Adjusted earnings increased by 15.3% to $3.31 per share.

Revenue grew 22.1% to $2.12 billion helped by strong volume growth and improvements in rental rates. Rental revenues climbed 23% to $1.8 billion. The company realized broad-based growth across its geographic markets and vertical end-markets on both an actual and pro forma basis.

United Rentals (NYSE: URI) reported a 4% decline in earnings for the first quarter of 2019.

Looking ahead into fiscal 2019, the company reaffirmed its total revenue guidance in the range of $9.15 billion to $9.55 billion and adjusted EBITDA outlook in the range of $4.35 billion to $4.55 billion. Net cash provided by operating activities are still predicted to be in the range of $2.85 billion to $3.2 billion and free cash flow, excluding merger-related charges, is projected to be in the $1.3 billion to $1.5 billion range.

For the first quarter, fleet productivity within rental revenue decreased by 1.3% year-over-year, primarily due to the impact of the BakerCorp and BlueLine acquisitions. Rental revenue for the company’s specialty segment, Trench, Power, and Fluid Solutions, increased by 44.2% year-over-year, including a 9.5% increase on a same-store basis.

The company generated $192 million of proceeds from used equipment sales at a GAAP gross margin of 34.9%. This compared with $181 million at a GAAP gross margin of 40.9% for the same period last year. The decline in gross margin was primarily due to lower-margin sales of fleet acquired with BlueLine.

During the first quarter, the company reduced net debt by $150 million relative to year-end 2018 levels, repurchased $210 million of common stock and lowered its average diluted share count by 6.1% year-over-year. As of March 31, 2019, the company has repurchased $630 million of common stock under its current $1.25 billion repurchase program.

Shares of United Rentals ended Wednesday’s regular session down 0.23% at $125.76 on the NYSE. Following the earnings release, the stock inched up over 6% in the after-market session.

 

We’re on Apple News! Follow us to receive the latest stock market, earnings, and financial news at your fingertips

Most Popular

Context Therapeutics: Another clinical-stage oncology research firm to go public soon

The US primary markets seem to be having a record-breaking start to the year, with over $171 billion raised in the first half of 2021 compared to $168 billion for

Biogen (BIIB) Stock: Does FDA nod for Aduhelm offer a buying opportunity?

The pharmaceutical industry has been witnessing hectic activity for some time, with most drug makers either channelizing their resources for vaccine development or engaging in COVID care programs. Biotechnology giant

IPO News: Monte Rosa Therapeutics will go public this week, here are a few things to know

Biotechnology company Monte Rosa Therapeutics is slated to go public this week. In a pandemic-ridden world, this industry is expanding at a healthy pace. The global biotechnology market is estimated

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top