United Rentals to Report Q1 Earnings: What's in Store for the Stock?

Core Viewpoint - United Rentals, Inc. is expected to report its first-quarter 2025 results on April 23, with adjusted earnings per share (EPS) anticipated to decrease from the previous year, while revenues are projected to show modest growth driven by infrastructure demand [1][2][4]. Revenue Expectations - The Zacks Consensus Estimate for first-quarter adjusted earnings is $8.90 per share, reflecting a 2.7% decrease from $9.15 per share in the same quarter last year [2]. - Revenue is projected at $3.57 billion, indicating a 2.6% growth compared to the prior-year quarter [3]. - Revenue growth is expected to be supported by ongoing demand from large infrastructure projects, including data centers, semiconductor manufacturing, and energy infrastructure [4]. Segment Performance - General Rentals, which contributed 70.7% to total revenues in 2024, is expected to see a slight revenue decline of 0.4% to $2.54 billion, while Specialty Rentals are projected to increase by 11.8% to $1.05 billion year-over-year [6]. - Equipment Rentals, accounting for 83.6% of total revenues in the last quarter, is expected to grow by 3.9% to $3.04 billion [7][8]. Earnings and Margins - Despite revenue growth, margin pressures are anticipated due to a higher proportion of lower-margin revenue sources and investments in growth initiatives [9]. - Adjusted EBITDA is expected to grow by 1.1% year-over-year to $1.6 billion, but the adjusted EBITDA margin is projected to decline by 70 basis points to 44.8% [10][11]. Earnings Prediction - The model does not predict an earnings beat for United Rentals, with an Earnings ESP of -1.11% and a Zacks Rank of 3 (Hold) [12].