Sangwien/iStock via Getty Images MoneyShow’s top contributing analysts, strategists, and newsletter editors share their investment recommendations for the year ahead. See Part 8 here. United Rentals By John Eade, President of Argus Research United Rentals (URI) shares have consistently outperformed the market and the Industrial sector over trailing 3-month, 1-year, and five-year periods. We expect this trend to continue. United Rentals is the largest rental equipment company in the world. We are comfort ...

STAMFORD, Conn.--(BUSINESS WIRE)--United Rentals, Inc. (NYSE: URI), the world's largest equipment rental company, today announced a next-generation access management solution that seamlessly manages jobsite and equipment access through RFID badges. This single-badge, multi-use solution can increase jobsite visibility and control for safer, more efficient operations. Next-generation access management is compatible with a variety of third-party workforce management solutions that register workers and issue ...

United Rentals (URI 12.46%) shares powered 12.4% higher through 12:45 p.m. ET on Thursday after the lessor of construction and general industrial equipment reported better-than-expected sales for the quarter -- and better earnings as well.Heading into the Q4 2023 report, Wall Street analysts forecast that United Rentals would earn $10.93 per share, adjusted for one-time items, on quarterly revenue of $3.6 billion. As it turned out, United Rentals earned $11.26 per share as revenue came in ahead of expectati ...

Financial Data and Key Metrics Changes - Total revenue for Q4 2023 grew by 13% year-over-year to $3.7 billion, marking a record for the fourth quarter [6] - Rental revenue increased by 13.5%, with adjusted EBITDA rising almost 10% to over $1.8 billion, resulting in a margin of 48% [6][15] - Adjusted EPS grew by 16% to $11.26, while free cash flow exceeded $2.3 billion for the year [7][18] Business Line Data and Key Metrics Changes - Fourth quarter rental revenue reached a record $3.12 billion, up $372 million or 13.5% year-over-year, driven by diverse strength across end markets [13] - Adjusted EBITDA for the quarter was a record $1.81 billion, reflecting a year-over-year increase of $162 million or 10% [15] - Ancillary revenues within rental increased by 14.2%, consistent with rental revenue growth [16] Market Data and Key Metrics Changes - Industrial end markets saw healthy growth, particularly in industrial manufacturing and power, with solid growth in construction markets [8] - Geographically, rental revenue in specialty increased by 15% year-on-year, reflecting double-digit growth across all businesses [8] Company Strategy and Development Direction - The company plans to return nearly $2 billion of cash to shareholders in 2024, with a reduced leverage target of 1.5 to 2.5 times [9][24] - The focus remains on funding growth through attractive returns, both organically and via acquisitions, while also returning excess free cash flow to shareholders [22][24] - The company aims to achieve its 2028 aspirational goals, emphasizing operational excellence and customer-centric strategies [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2024, supported by customer sentiment indicators and solid backlogs, despite a transition year with expected mid-single-digit growth [20][58] - The company remains confident in its ability to generate strong free cash flow throughout the cycle, which is seen as a hallmark of its business model [7][18] Other Important Information - The company returned over $1.4 billion to shareholders in 2023, including $1 billion through share repurchases and $406 million via dividends [19] - The net leverage ratio improved to 1.6 times at the end of the quarter, with total liquidity exceeding $3.3 billion [19] Q&A Session Summary Question: Fleet growth and productivity expectations for 2024 - Management indicated a planned fleet growth of about 4% to 5% for 2024, with expectations for positive fleet productivity despite inflationary pressures [26][28] Question: M&A landscape and capital allocation - Management confirmed that M&A remains a priority, with a robust pipeline and a high bar for acquisitions, while also focusing on returning cash to shareholders [30][31] Question: Incremental margins and investment impacts - Management acknowledged that incremental margins are expected to be lower than historical ranges due to ongoing investments in cold starts and technology [34][35] Question: Ahern integration and GFN growth - The integration of Ahern is complete, with efficiencies expected to continue, and GFN is ahead of schedule in its growth plan [50][51] Question: Cash taxes and potential tax legislation impacts - Management discussed a significant increase in cash taxes for 2024, with potential benefits if proposed tax legislation passes [71][72]

United Rentals, Inc.’s (URI) shares gained 4% in the after-hours trading session on Jan 24 after it reported impressive fourth-quarter 2023 results. Its earnings and revenues beat the Zacks Consensus Estimate and increased on a year-over-year basis.The upside was mainly driven by sustained growth across the business, profitability and returns, underpinned by broad-based activity.Moreover, URI has provided strong guidance for 2024, given the strength of the present market condition and the multi-year tailwin ...

United Rentals (URI) reported $3.73 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 13.1%. EPS of $11.26 for the same period compares to $9.74 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $3.63 billion, representing a surprise of +2.76%. The company delivered an EPS surprise of +3.78%, with the consensus EPS estimate being $10.85.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- ...

United Rentals (URI) came out with quarterly earnings of $11.26 per share, beating the Zacks Consensus Estimate of $10.85 per share. This compares to earnings of $9.74 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.78%. A quarter ago, it was expected that this equipment rental company would post earnings of $11.32 per share when it actually produced earnings of $11.73, delivering a surprise of 3.62%.Over the last four quart ...

United Rentals, Inc. (URI) is scheduled to report fourth-quarter 2023 results on Jan 24, after market close.In the last reported quarter, United Rentals’ adjusted earnings and revenues topped the Zacks Consensus Estimate by 3.6% and 2.3%, respectively. This largest equipment rental company’s third-quarter 2023 adjusted earnings and revenues grew 26.5% and 23.4% year over year, respectively.Markedly, its earnings surpassed expectations in two of the trailing four quarters and missed on other two occasions, w ...

Financial Performance - Total revenues for 2023 reached $14,332 million, a 23.1% increase from $11,642 million in 2022[24] - Net income for 2023 was $2.424 billion, an increase from $2.105 billion in 2022, with diluted earnings per share rising to $35.28 from $29.65[157] - Adjusted EBITDA for 2023 rose by $1.239 billion, or 22.1%, with an adjusted EBITDA margin of 47.8%, a decrease of 50 basis points year-over-year[163] - Revenues for the year ended December 31, 2023, reflected strong demand across end-markets, continuing the trend from 2021 through 2023[167] - For the year ended December 31, 2023, net income increased by $319 million, or 15.2%, with a net income margin of 16.9%, down 120 basis points from the previous year[163] Revenue Breakdown - Equipment rental revenue accounted for 84% of total revenues in 2023, down from 87% in 2022[24] - Full year rental revenue increased by 19.3% year-over-year, including the impact of the Ahern Rentals acquisition[32] - Specialty segment revenues accounted for 25.4% of total revenues for the year ended December 31, 2023, up from 7.3% in 2013[112] - Sales of rental equipment surged by 63.1% year-over-year, reflecting a normalization of volumes after a strategic sales hold in 2022[170] - Ancillary fees accounted for approximately 16% of equipment rental revenue in 2023, with delivery and pick-up revenue being the most significant component at 8%[169] Equipment and Fleet Management - Year-over-year change in average original equipment cost (OEC) was 21.9% in 2023, compared to 13.6% in 2022[24] - The fleet OEC as of December 31, 2023, was $20.66 billion, up from $19.61 billion in 2022[24] - The company has a large and diverse rental fleet, which allows it to serve substantial customers and improve performance, with industrial and non-construction rentals representing approximately 49% of rental revenue[33] - The company offers approximately 4,800 classes of rental equipment, including general construction and industrial equipment, available for hourly, daily, weekly, or monthly rental[48] - Equipment rentals for 2023 reached $12.1 billion, a 19.3% increase from 2022, driven by a 21.9% rise in average OEC[197] Market Position and Growth - The company maintained an estimated North American market share of approximately 15% as of December 31, 2023[32] - Estimated North American equipment rental industry revenue growth was 12% in 2023, compared to 14% in 2022[24] - The company estimates a 15% market share in the North American equipment rental industry based on 2023 total rental revenues, positioning it well against smaller competitors[58] - The company is focused on optimizing field operations to improve productivity and service capabilities, although success is uncertain[99] - The company has historically achieved growth through acquisitions and will continue to explore potential acquisitions selectively[83] Debt and Financial Risks - As of December 31, 2023, the company's total indebtedness was $11.5 billion, with $3.6 billion (31%) bearing interest at variable rates[70] - The company’s ability to generate cash flow from operations is critical for servicing its debt, which is subject to various economic and market factors[71] - The company may face challenges in refinancing its indebtedness on favorable terms, which could adversely affect liquidity and operational results[72] - Economic uncertainties, including public health crises and geopolitical conflicts, could negatively impact the company's business operations and financial condition[65] - The company may require additional debt or equity financing if cash generated from operations and existing borrowings are insufficient to meet capital requirements[82] Shareholder Returns - The company completed $1.0 billion in share repurchases under its $1.25 billion program as of December 31, 2023, with plans to complete the program in Q1 2024[91] - A new share repurchase program of $1.5 billion has been authorized, with intentions to purchase $1.25 billion in 2024 and complete it by the end of Q1 2025[91] - The company paid dividends totaling $406 million in 2023, marking the first dividend payments in its history, with a quarterly dividend of $1.48 per share[155] - A quarterly dividend program was initiated in January 2023, with total dividends paid in 2023 amounting to $406 million, equating to $5.92 per share[219] Operational Challenges - The company faces risks from economic conditions, particularly in North American construction and industrial activities, which could lead to decreased demand for equipment rentals[64] - Competitive pressures in the fragmented equipment rental industry may adversely affect the company's market share and pricing power[68] - The company faces potential supply chain disruptions that could adversely affect its ability to meet customer demand, impacting financial performance[101] - Aging rental fleet may lead to increased operating costs and decreased earnings if equipment is not replaced timely[102] - The company is exposed to cybersecurity risks, which could result in significant losses or liability if systems are compromised[108] Employee and Operational Metrics - Employee headcount grew to 26,300 in 2023, up from 24,600 in 2022[24] - The company employs around 26,300 individuals, with a mix of salaried and hourly employees, and maintains good employee relations through ongoing satisfaction surveys[60] - Approximately 1,800 employees are represented by unions, which could lead to higher labor costs or disruptions in service due to potential work stoppages[123] - The company has operations in multiple countries, exposing it to foreign currency fluctuations and compliance costs with local laws[114] - The company operates 1,584 rental locations, with 1,357 in the United States, 147 in Canada, 38 in Europe, and 42 in the Asia-Pacific region[133]

Wall Street analysts expect United Rentals (URI) to post quarterly earnings of $10.85 per share in its upcoming report, which indicates a year-over-year increase of 11.4%. Revenues are expected to be $3.63 billion, up 10.1% from the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.8% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Ahead of a company's earni ...