The 10-second takeaway
For the quarter ended March 31 (Q1), United Rentals met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew.
Gross margins increased, operating margins contracted, net margins dropped.
United Rentals recorded revenue of $1.10 billion. The nine analysts polled by S&P Capital IQ wanted to see a top line of $1.11 billion on the same basis. GAAP reported sales were 68% higher than the prior-year quarter's $656.0 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 $0.58. The 12 earnings estimates compiled by S&P Capital IQ forecast $0.49 per share. Non-GAAP EPS of $0.58 for Q1 were 61% higher than the prior-year quarter's $0.36 per share. GAAP EPS of $0.19 for Q1 were 12% higher than the prior-year quarter's $0.17 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 53.4%, much better than the prior-year quarter. Operating margin was 14.6%, 20 basis points worse than the prior-year quarter. Net margin was 1.9%, 10 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.23 billion. On the bottom line, the average EPS estimate is $1.06.
Next year's average estimate for revenue is $5.06 billion. The average EPS estimate is $4.82.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 206 members out of 225 rating the stock outperform, and 19 members rating it underperform. Among 74 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 67 give United Rentals a green thumbs-up, and seven 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 $63.58.
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