Categories AlphaGraphs, Earnings, Industrials
United Rentals (URI) surpasses Q3 view; stock dips on dismal FY19 outlook
United Rentals (NYSE: URI) reported third quarter 2019 earnings results that exceeded analysts’ views. The equipment rental company reported an adjusted EPS of $5.96 on revenue of $2.49 billion. Wall Street had project United Rentals to earn $5.66 per share on revenue of $2.45 billion.
United Rentals stock was down about 4% immediately after the earnings announcement in the extended hours of trading as the company trimmed down the upper end of 2019 revenue outlook.
Revenue for the recently ended quarter surged 17.6% and rental revenue rose 15.4% to $2.15 billion. The revenue growth was driven by the strength across the core construction markets. GAAP earnings increased to $5.08 per share from $4.01 in the prior year quarter.
Looking ahead, United Rentals expects that the lingering economic uncertainty could impact the construction and industrial activity. The Stamford, Connecticut-based company cut down its upper end of the revenue outlook for the fiscal year 2019. The slower industrial growth and higher-than-expected operating costs during the third quarter were reflected in the updated fiscal year 2019 guidance.
United Rentals absorbed higher operating costs in the recently ended quarter primarily related to repairs and maintenance and delivery, including the costs of transferring equipment between the company’s facilities.
United Rentals now expect FY19 revenue to be between $9.25 billion and $9.35 billion versus the prior outlook of $9.15 billion to $9.45 billion. Adjusted EBITDA is now projected to be in the range of $4.35 billion to $4.4 billion compared to the prior guided range of $4.35 billion to $4.5 billion.
URI stock, which went up by 0.82% to $121.67 when the market closed today, had advanced 19% since the beginning of this year. However, the stock price had dropped 14% from this time last year.
Most Popular
What to look for when CVS Health (CVS) reports Q3 earnings
Healthcare company CVS Health Corporation (NYSE: CVS) is all set to report earnings next week, with Wall Street expecting a mixed outcome. The company has been facing challenges in certain
eBay (EBAY): A few factors that helped drive growth in Q3 2024
Shares of eBay Inc. (NASDAQ: EBAY) stayed green on Friday. The stock has gained 32% year-to-date. The ecommerce leader delivered revenue and earnings growth for the third quarter of 2024,
CVX Earnings: Chevron reports lower revenue and profit for Q3 2024
Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to