United Rentals Earnings: Here’s Why the Stock is Falling Now
United Rentals, Inc. (NYSE:URI) delivered a profit and missed Wall Street’s expectations, AND 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 3.28%.
United Rentals, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 47.22% to $0.19 in the quarter versus EPS of $0.36 in the year-earlier quarter.
Revenue: Rose 67.68% to $1.1 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: United Rentals, Inc. reported adjusted EPS income of $0.19 per share. By that measure, the company missed the mean analyst estimate of $0.48. It missed the average revenue estimate of $1.11 billion.
Quoting Management: Michael Kneeland, chief executive officer of United Rentals, said, “Our first quarter performance has given us a strong start to a pivotal year. Revenue, rates and time utilization all met or exceeded our expectations, and our adjusted EBITDA margin of 41% was a first quarter record for us. We remain solidly on track for a year of disciplined growth, including a rental rate increase of 4.5% on total revenue of approximately $5 billion.”
Key Stats (on next page)…
Revenue decreased 11.93% from $1.25 billion in the previous quarter. EPS decreased 85.04% from $1.27 in the previous quarter.
Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1 to a profit $1.03. For the current year, the average estimate has moved down from a profit of $4.76 to a profit of $4.69 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)