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United Rentals Reports Mixed Q2 Results (URI)

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United Rentals Reports Mixed Q2 Results URI

United Rentals (NYSE: URI) released its fiscal second-quarter earnings results after the closing bell on Tuesday.

The company reported earnings per share that were ahead of estimates, but revenue came in below expectations. In late trade, the shares were last down a little more than 1 percent to $50.40.

Management Commentary

Michael Kneeland, chief executive officer of United Rentals, said, "Our strong second quarter performance reflects our commitment to a strategy of profitable and disciplined growth.”

Kneeland continued, “We invested over $730 million in fleet purchases in the second quarter to fill customer orders, especially key accounts, and prepare for peak season demand. We feel comfortable about achieving our full year outlook on rate, total revenue, EBITDA and free cash flow, while continuing to reduce our leverage.”

Q2 Results

United Rentals reported net income of $83 million or $0.78 per share, compared to a loss of $52 million or $0.63 per share, in last year's corresponding period.

On an adjusted basis, net income for the second-quarter was $1.12 per share versus $0.66 per share, last year. This easily topped Wall Street analysts' consensus EPS estimates of $1.01.

Revenue in the period rose to $1.21 billion from $993 billion a year ago. This missed analysts' consensus revenue estimates of $1.23 billion.

Equipment rental sales advanced to $1.01 billion from $845 million last year. Rental rates rose 4.2 percent in the quarter and rental volume climbed 5.1 percent.

Related: What is behind Coca-Cola's weak Q2 results?

Posted-In: Michael KneelandEarnings News Guidance After-Hours Center Movers Best of Benzinga

 

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