Free Post Earnings Research Report: United Rentals’ Revenue Surged 26%; Adjusted EPS Soared 76%

Stock Monitor: H&E Equipment Services Post Earnings Reporting

LONDON, UK / ACCESSWIRE / May 02, 2018 / Active-Investors.com has just released a free earnings report on United Rentals, Inc. (NYSE: URI). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=URI. United Rentals reported its first quarter fiscal 2018 operating and financial results on April 18, 2018. The equipment rental Company outperformed top- and bottom-line expectations. Additionally, the Company announced a $1.25 billion share repurchase program. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for H&E Equipment Services, Inc. (NASDAQ: HEES), which also belongs to the Services sector as the Company United Rentals. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, United Rentals most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=URI

Earnings Highlights and Summary

United Rentals’ total revenue was $1.73 billion for the first quarter 2018, reflecting growth of 26% compared to $1.36 billion for Q1 2017. The Company’s reported numbers topped analysts’ estimates of $1.66 billion.

On a GAAP basis, United Rentals reported net income of $183 million, or $2.15 per diluted share, in Q1 2018 compared to $109 million, or $1.27 per diluted share, for Q1 2017. The Company’s reported quarter included a net income benefit associated with the Tax Cuts and Jobs Act (Tax Act) that was enacted in December 2017. The Tax Act reduced the US federal corporate statutory tax rate from 35% to 21%, which contributed an estimated $0.37 to earnings per diluted share in the reported quarter.

For Q1 2018, United Rentals’ adjusted earnings soared to $2.87 per diluted share, compared to $1.63 per diluted share for Q1 2018. The reduction in the tax rate contributed an estimated $0.50 to adjusted earnings in the reported quarter. The Company’s earnings beat Wall Street’s estimates of $2.38 per share.

Operating Details

During Q1 2018, United Rentals’ Rental revenue surged 25.1% to $1.46 billion compared to $1.17 billion in Q1 2017. Within rental revenue, owned equipment rental revenue advanced 25.4%, reflecting growth of 26.1% in the volume of equipment on rent and 1.9% in rental rates.

During Q1 2018, United Rentals’ Time utilization decreased 80 basis points on a y-o-y basis, largely reflecting the impact of the NES and Neff acquisitions. On a pro-forma basis, time utilization decreased 20 basis points versus the year ago comparable period.

United Rentals’ Trench, Power, and Pump specialty segment’s rental revenue increased by 36.5% on a y-o-y basis, primarily on a same store basis, while the segment’s rental gross margin improved by 170 basis points to 46.1% in the reported quarter.

Cash Matters

For Q1 2018, United Rentals’ net cash provided by operating activities was $642 million, and free cash flow was $516 million after total rental and non-rental gross capital expenditures of $313 million compared to net cash provided by operating activities of $622 million, and free cash flow of $490 million after total rental and non-rental gross capital expenditures of $241 million in Q1 2017.

United Rentals’ Return on Invested Capital (ROIC) was 9.4% for the 12 months ended March 31, 2018, compared to 8.4% for the 12 months ended March 31, 2017.

In Q4 2017, United Rentals resumed its pre-existing $1 billion program to repurchase shares of its common stock. The repurchase program commenced in November 2015 and was paused in October 2016 as the company evaluated potential acquisition opportunities. As of March 31, 2018, United Rentals had completed $832 million of repurchases under the program, which the Company intends to complete by mid-2018.

On April 17, 2018, United Rentals’ Board of Directors authorized a new $1.25 billion share repurchase program which will commence upon completion of the aforementioned program. United Rentals intends to complete the new share repurchase program by the end of 2019.

Fleet Size

As of March 31, 2018, United Rentals’ size of the rental fleet was $11.39 billion of Original Equipment Cost (OEC) compared to $11.51 billion at December 31, 2017. The age of the Company’s rental fleet was 47.5 months on an OEC-weighted basis at March 31, 2018, compared to 47.0 months at December 31, 2017.

Stock Performance Snapshot

May 01, 2018 – At Tuesday’s closing bell, United Rentals’ stock slightly declined 0.91%, ending the trading session at $148.64.

Volume traded for the day: 1.86 million shares, which was above the 3-month average volume of 1.47 million shares.

Stock performance in the previous six-month period – up 1.85%; and past twelve-month period – up 36.52%

After yesterday’s close, United Rentals’ market cap was at $12.63 billion.

Price to Earnings (P/E) ratio was at 17.39.

The stock is part of the Services sector, categorized under the Rental & Leasing Services industry. This sector was up 0.2% at the end of the session.

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