The 10-second takeaway
For the quarter ended June 30 (Q2), 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 increased significantly. GAAP earnings per share increased.
Margins grew across the board.
United Rentals reported revenue of $1.21 billion. The eight analysts polled by S&P Capital IQ looked for sales of $1.22 billion on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $993.0 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 $1.12. The 10 earnings estimates compiled by S&P Capital IQ predicted $1.08 per share. Non-GAAP EPS of $1.12 for Q2 were 70% higher than the prior-year quarter's $0.66 per share. GAAP EPS were $0.78 for Q2 compared to -$0.63 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 56.3%, much better than the prior-year quarter. Operating margin was 21.3%, 330 basis points better than the prior-year quarter. Net margin was 6.9%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.33 billion. On the bottom line, the average EPS estimate is $1.63.
Next year's average estimate for revenue is $4.99 billion. The average EPS estimate is $4.82.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 209 members out of 228 rating the stock outperform, and 19 members rating it underperform. Among 74 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 71 give United Rentals a green thumbs-up, and three 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 $64.83.
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