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Based in Stamford, Connecticut, United Rentals, Inc. (URI) is an equipment rental company specializing in renting out construction and industrial equipment. With a market cap of $41.78 billion, United Rentals is renowned for its extensive fleet of equipment and comprehensive solutions that enhance operational efficiency across various industries, including construction, industrial, and municipal markets. The company is set to announce its fiscal Q2 earnings results on Wednesday, Jul. 24.
Ahead of the event, analysts expect URI to report a profit of $10.46 per share, up 5.9% from $9.88 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
Its adjusted earnings of $9.15 per share for the last reported quarter surpassed the consensus estimate by 9.6%. The company’s outperformance was driven by strong equipment demand, increased rental revenue, fleet productivity, and contributions from the Yak acquisition.
For fiscal 2024, analysts expect URI to report EPS of $43.76, up 7.4% from $40.74 in fiscal 2023.
URI stock is up 12.5% on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 18.1% gains. However, the stock outperformed the Vanguard Industrials Index Fund ETF Shares (VIS) with 6.6% returns over the same time frame.
United Rentals has outperformed the industry due to its strong market positioning in construction equipment rentals despite industry headwinds. Following its Q1 earnings result on April 24, the stock gained 5.5% as the company surpassed analysts' profit and revenue expectations, driven by strong equipment demand. Additionally, United Rentals raised its 2024 revenue forecast to account for the expected contribution from the acquisition of Yak.
The consensus opinion on URI stock is optimistic, with an overall “Moderate Buy” rating. Out of 20 analysts covering the stock, eight advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, seven recommend a “Hold,” and four suggest a “Strong Sell.”
The consensus rating is more bullish than three months ago when the stock had an overall “Hold” rating. URI's average analyst price target is $663.94, indicating a potential upside of 2.9% from the current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
