United Rentals (NYSE:URI) Releases Earnings Results, Beats Expectations By $0.80 EPS

United Rentals (NYSE:URI) issued its quarterly earnings data on Wednesday. The construction company reported $9.15 earnings per share (EPS) for the quarter, beating the consensus estimate of $8.35 by $0.80, Briefing.com reports. The company had revenue of $3.49 billion during the quarter, compared to the consensus estimate of $3.44 billion. United Rentals had a net margin of 17.31% and a return on equity of 36.85%. United Rentals’s revenue for the quarter was up 6.1% on a year-over-year basis. During the same quarter last year, the company earned $7.95 earnings per share. United Rentals updated its FY 2024 guidance to EPS.

United Rentals Stock Down 0.4 %

Shares of NYSE URI traded down $2.97 during trading hours on Friday, hitting $687.95. The company had a trading volume of 116,418 shares, compared to its average volume of 581,798. United Rentals has a 1-year low of $325.15 and a 1-year high of $732.37. The company has a quick ratio of 0.75, a current ratio of 0.81 and a debt-to-equity ratio of 1.24. The firm’s 50 day moving average is $680.37 and its 200-day moving average is $576.87. The stock has a market capitalization of $46.21 billion, a P/E ratio of 18.71, a price-to-earnings-growth ratio of 2.27 and a beta of 1.84.

United Rentals Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, May 22nd. Shareholders of record on Wednesday, May 8th will be issued a dividend of $1.63 per share. The ex-dividend date is Tuesday, May 7th. This represents a $6.52 annualized dividend and a yield of 0.95%. United Rentals’s dividend payout ratio (DPR) is currently 17.66%.

United Rentals announced that its Board of Directors has initiated a share repurchase program on Wednesday, January 24th that authorizes the company to buyback $1.50 billion in outstanding shares. This buyback authorization authorizes the construction company to reacquire up to 3.8% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s leadership believes its stock is undervalued.

Insiders Place Their Bets

In other news, CFO William E. Grace sold 775 shares of United Rentals stock in a transaction dated Thursday, February 15th. The shares were sold at an average price of $655.62, for a total value of $508,105.50. Following the completion of the transaction, the chief financial officer now owns 6,323 shares of the company’s stock, valued at approximately $4,145,485.26. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 0.53% of the company’s stock.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the company. Robert W. Baird raised their price objective on United Rentals from $322.00 to $559.00 and gave the company an “underperform” rating in a research note on Friday, January 26th. Wells Fargo & Company increased their price target on shares of United Rentals from $630.00 to $710.00 and gave the stock an “overweight” rating in a research report on Friday, January 26th. Barclays boosted their price objective on United Rentals from $325.00 to $400.00 and gave the company an “underweight” rating in a report on Friday, January 26th. Evercore ISI increased their target price on United Rentals from $575.00 to $740.00 and gave the stock an “outperform” rating in a report on Tuesday, February 20th. Finally, Truist Financial assumed coverage on United Rentals in a research report on Thursday, March 14th. They issued a “buy” rating and a $793.00 target price for the company. Three equities research analysts have rated the stock with a sell rating, four have given a hold rating and six have given a buy rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $589.21.

About United Rentals

United Rentals, Inc, through its subsidiaries, operates as an equipment rental company. It operates in two segments, General Rentals and Specialty. The General Rentals segment rents general construction and industrial equipment includes backhoes, skid-steer loaders, forklifts, earthmoving equipment, and material handling equipment; aerial work platforms, such as boom and scissor lifts; and general tools and light equipment comprising pressure washers, water pumps, and power tools for construction and industrial companies, manufacturers, utilities, municipalities, homeowners, and government entities.