Equipment rental company United Rentals (NYSE: URI) will be announcing earnings results this Wednesday afternoon. Here’s what investors should know.
United Rentals beat analysts’ revenue expectations by 1.6% last quarter, reporting revenues of $4.23 billion, up 5.9% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ organic revenue estimates but a significant miss of analysts’ EPS estimates.
Is United Rentals a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting United Rentals’s revenue to grow 3.4% year on year to $4.24 billion, slowing from the 9.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $11.80 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. United Rentals has missed Wall Street’s revenue estimates twice over the last two years.
Looking at United Rentals’s peers in the industrial distributors segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Richardson Electronics delivered year-on-year revenue growth of 5.7%, beating analysts’ expectations by 4.8%, and MSC Industrial reported revenues up 4%, in line with consensus estimates. Richardson Electronics traded down 11.7% following the results while MSC Industrial was also down 1.2%.
Read our full analysis of Richardson Electronics’s results here and MSC Industrial’s results here.
There has been positive sentiment among investors in the industrial distributors segment, with share prices up 8.7% on average over the last month. United Rentals is up 11.2% during the same time and is heading into earnings with an average analyst price target of $1,017 (compared to the current share price of $912.58).
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