The 10-second takeaway
For the quarter ended Dec. 31 (Q4), United Rentals met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share stayed the same.
Gross margins grew, operating margins increased, net margins dropped.
United Rentals tallied revenue of $1.25 billion. The eight analysts polled by S&P Capital IQ expected to see a top line of $1.26 billion on the same basis. GAAP reported sales were 67% higher than the prior-year quarter's $746.0 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 $1.27. The 10 earnings estimates compiled by S&P Capital IQ averaged $1.01 per share. GAAP EPS of $0.39 were the same as 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 39.6%, 270 basis points better than the prior-year quarter. Operating margin was 20.4%, 60 basis points better than the prior-year quarter. Net margin was 3.3%, 60 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.11 billion. On the bottom line, the average EPS estimate is $0.48.
Next year's average estimate for revenue is $5.10 billion. The average EPS estimate is $4.74.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 204 members out of 224 rating the stock outperform, and 20 members rating it underperform. Among 76 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 72 give United Rentals a green thumbs-up, and four 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 $49.42.
If you're interested in companies like United Rentals, you might want to check out the jaw-dropping technology that's about to put 100 million Chinese factory workers out on the street – and the 3 companies that control it. We'll tell you all about them in "The Future is Made in America." Click here for instant access to this free report.
- Add United Rentals to My Watchlist.