United Rentals Beats on Both Top and Bottom Lines

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United Rentals (NYS: URI) reported earnings on April 17. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), United Rentals beat expectations on revenue and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew.


Margins grew across the board.

Revenue details
United Rentals tallied revenue of $656.0 million. The six analysts polled by S&P Capital IQ expected to see sales of $610.0 million on the same basis. GAAP reported sales were 25% higher than the prior-year quarter's $523.0 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.36. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.09 per share on the same basis. GAAP EPS were $0.17 for Q1 compared to -$0.34 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 50.0%, 470 basis points better than the prior-year quarter. Operating margin was 14.8%, 890 basis points better than the prior-year quarter. Net margin was 2.0%, 580 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $759.4 million. On the bottom line, the average EPS estimate is $0.75.

Next year's average estimate for revenue is $3.11 billion. The average EPS estimate is $3.36.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 204 members out of 229 rating the stock outperform, and 25 members rating it underperform. Among 70 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 62 give United Rentals a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on United Rentals is buy, with an average price target of $46.17.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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