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In the last-reported quarter, United Rentals’ adjusted earnings topped the Zacks Consensus Estimate by 3%, but revenues missed the same by 1.2%, respectively. This largest equipment rental company’s third-quarter adjusted earnings and revenues grew 40.9% and 17.5% year over year, respectively.
Markedly, its earnings surpassed expectations in 33 out of the last 37 quarters. The company’s revenues topped the consensus mark in 20 out of the trailing 22 quarters.
Trend in Estimate Revision
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings has increased to $10.04 from $10.02 per share over the past 30 days. The estimated figure indicates 35.9% growth from the year-ago earnings of $7.39 per share. The consensus mark for revenues is $3.29 billion, suggesting an 18.6% year-over-year improvement.
Factors to Note
Higher pricing and improved activity level, backed by stronger demand in each of the end markets served in North America (industrial and other non-construction and commercial construction), are expected to aid United Rentals’ fourth-quarter results. Notably, federally funded infrastructure projects, industrial manufacturing, energy and power activities are expected to aid the company’s quarterly results. Furthermore, acquisitions are expected to have helped United Rentals to boost the top line in the quarter to be reported.
The company’s quarterly results are expected to benefit from solid mega-project activity. URI’s solid exposure to blue-chip engineering & construction accounts and industry-leading market share are expected to reflect its quarterly performance.
The company’s investment in the General Rental segment (wherein the primary growth drivers are non-residential construction and plant maintenance) also bodes well. Overall, industrial markets are expected to have aided the company’s performance.
Equipment Rentals revenues (accounting for more than 75% of its total revenues) are expected to have registered growth in the to-be-reported quarter. The Zacks Consensus Estimate for Equipment Rentals revenues is $2,762 million, which suggests an increase from the year-ago reported figure of $2,312 million.
The Zacks Consensus Estimate for Rental Equipment revenues is $332 million, which suggests an increase of 2.5% from the year-ago reported figure.
The consensus estimate for New Equipment sales suggests a decrease of 6.7% year over year. The consensus mark for Contractor supplies sales indicates 15.4% growth from the prior year. The consensus mark for Service and other revenues suggests 21.3% growth on a year-over-year basis.
From the margin perspective, supply-chain disruptions and higher inflation might be causes of concern.
What the Zacks Model Unveils
Our proven model predicts a likely earnings beat for United Rentals for the quarter to be reported. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is exactly the case here, as you will see below.
Earnings ESP: United Rentals has an Earnings ESP of +7.91%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some other companies in the Zacks Construction sector which, according to our model, have the right combination of elements to post an earnings beat on their quarters to be reported.
Boise Cascade Company (BCC - Free Report) has an Earnings ESP of +0.90% and carries a Zacks Rank #3.
BCC’s earnings topped the consensus mark in all the last four quarters, with the average surprise being 30.9%.
Fluor Corporation (FLR - Free Report) has an Earnings ESP of +2.48% and carries a Zacks Rank #2.
FLR’s earnings topped the consensus mark in one of the last four quarters but missed on three occasions, with the average negative surprise being 38.2%.
Otis Worldwide Corporation (OTIS - Free Report) has an Earnings ESP of +0.69% and a Zacks Rank #3.
OTIS’ earnings topped the consensus mark in the last four quarters, with the average surprise being 5.3%.
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United Rentals (URI) to Report Q4 Earnings: What's in Store?
United Rentals, Inc. (URI - Free Report) is scheduled to report fourth-quarter 2022 results on Jan 25, after market close.
In the last-reported quarter, United Rentals’ adjusted earnings topped the Zacks Consensus Estimate by 3%, but revenues missed the same by 1.2%, respectively. This largest equipment rental company’s third-quarter adjusted earnings and revenues grew 40.9% and 17.5% year over year, respectively.
Markedly, its earnings surpassed expectations in 33 out of the last 37 quarters. The company’s revenues topped the consensus mark in 20 out of the trailing 22 quarters.
Trend in Estimate Revision
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings has increased to $10.04 from $10.02 per share over the past 30 days. The estimated figure indicates 35.9% growth from the year-ago earnings of $7.39 per share. The consensus mark for revenues is $3.29 billion, suggesting an 18.6% year-over-year improvement.
Factors to Note
Higher pricing and improved activity level, backed by stronger demand in each of the end markets served in North America (industrial and other non-construction and commercial construction), are expected to aid United Rentals’ fourth-quarter results. Notably, federally funded infrastructure projects, industrial manufacturing, energy and power activities are expected to aid the company’s quarterly results. Furthermore, acquisitions are expected to have helped United Rentals to boost the top line in the quarter to be reported.
The company’s quarterly results are expected to benefit from solid mega-project activity. URI’s solid exposure to blue-chip engineering & construction accounts and industry-leading market share are expected to reflect its quarterly performance.
The company’s investment in the General Rental segment (wherein the primary growth drivers are non-residential construction and plant maintenance) also bodes well. Overall, industrial markets are expected to have aided the company’s performance.
Equipment Rentals revenues (accounting for more than 75% of its total revenues) are expected to have registered growth in the to-be-reported quarter. The Zacks Consensus Estimate for Equipment Rentals revenues is $2,762 million, which suggests an increase from the year-ago reported figure of $2,312 million.
The Zacks Consensus Estimate for Rental Equipment revenues is $332 million, which suggests an increase of 2.5% from the year-ago reported figure.
The consensus estimate for New Equipment sales suggests a decrease of 6.7% year over year. The consensus mark for Contractor supplies sales indicates 15.4% growth from the prior year. The consensus mark for Service and other revenues suggests 21.3% growth on a year-over-year basis.
From the margin perspective, supply-chain disruptions and higher inflation might be causes of concern.
What the Zacks Model Unveils
Our proven model predicts a likely earnings beat for United Rentals for the quarter to be reported. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is exactly the case here, as you will see below.
Earnings ESP: United Rentals has an Earnings ESP of +7.91%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: URI currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks With Favorable Combination
Here are some other companies in the Zacks Construction sector which, according to our model, have the right combination of elements to post an earnings beat on their quarters to be reported.
Boise Cascade Company (BCC - Free Report) has an Earnings ESP of +0.90% and carries a Zacks Rank #3.
BCC’s earnings topped the consensus mark in all the last four quarters, with the average surprise being 30.9%.
Fluor Corporation (FLR - Free Report) has an Earnings ESP of +2.48% and carries a Zacks Rank #2.
FLR’s earnings topped the consensus mark in one of the last four quarters but missed on three occasions, with the average negative surprise being 38.2%.
Otis Worldwide Corporation (OTIS - Free Report) has an Earnings ESP of +0.69% and a Zacks Rank #3.
OTIS’ earnings topped the consensus mark in the last four quarters, with the average surprise being 5.3%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.