United Rentals (NYSE: URI ) reported earnings on Oct. 16. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), United Rentals missed estimates on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share contracted significantly.
Gross margins increased, operating margins contracted, net margins shrank.
United Rentals tallied revenue of $1.22 billion. The nine analysts polled by S&P Capital IQ looked for revenue of $1.27 billion on the same basis. GAAP reported sales were 71% higher than the prior-year quarter's $713.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.35. The 11 earnings estimates compiled by S&P Capital IQ predicted $1.12 per share. GAAP EPS of $0.70 for Q3 were 22% lower than the prior-year quarter's $0.90 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 41.4%, 300 basis points better than the prior-year quarter. Operating margin was 22.1%, 10 basis points worse than the prior-year quarter. Net margin was 6.0%, 310 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.27 billion. On the bottom line, the average EPS estimate is $0.98.
Next year's average estimate for revenue is $4.22 billion. The average EPS estimate is $3.24.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 198 members out of 218 rating the stock outperform, and 20 members rating it underperform. Among 62 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 56 give United Rentals a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on United Rentals is outperform, with an average price target of $49.00.