United Rentals URI will release its quarterly earnings report on Wednesday, 2024-10-23. Here's a brief overview for investors ahead of the announcement.
Analysts anticipate United Rentals to report an earnings per share (EPS) of $12.49.
Investors in United Rentals are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.
It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.
Earnings Track Record
In the previous earnings release, the company beat EPS by $0.16, leading to a 5.37% increase in the share price the following trading session.
Performance of United Rentals Shares
Shares of United Rentals were trading at $832.53 as of October 21. Over the last 52-week period, shares are up 107.27%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analyst Views on United Rentals
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding United Rentals.
Analysts have given United Rentals a total of 6 ratings, with the consensus rating being Buy. The average one-year price target is $899.5, indicating a potential 8.04% upside.
Understanding Analyst Ratings Among Peers
The below comparison of the analyst ratings and average 1-year price targets of W.W. Grainger, Fastenal and Ferguson Enterprises, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.
- W.W. Grainger is maintaining an Neutral status according to analysts, with an average 1-year price target of $1038.67, indicating a potential 24.76% upside.
- Analysts currently favor an Neutral trajectory for Fastenal, with an average 1-year price target of $78.0, suggesting a potential 90.63% downside.
- For Ferguson Enterprises, analysts project an Outperform trajectory, with an average 1-year price target of $228.71, indicating a potential 72.53% downside.
Peer Metrics Summary
The peer analysis summary offers a detailed examination of key metrics for W.W. Grainger, Fastenal and Ferguson Enterprises, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| United Rentals | Buy | 6.16% | $1.52B | 7.76% |
| W.W. Grainger | Neutral | 3.11% | $1.69B | 14.52% |
| Fastenal | Neutral | 3.48% | $858.60M | 8.41% |
| Ferguson Enterprises | Outperform | 1.38% | $2.46B | 8.10% |
Key Takeaway:
United Rentals is positioned in the middle among its peers for consensus rating. It ranks at the bottom for revenue growth. In terms of gross profit, it is at the top among its peers. For return on equity, United Rentals is positioned in the middle compared to its peers.
Get to Know United Rentals Better
United Rentals is the world's largest equipment rental company. It principally operates in the United States and Canada, where it commands approximately 15% share in a highly fragmented market. It serves three end markets: general industrial, commercial construction, and residential construction. Like its peers, United Rentals historically has provided its customers with equipment that was intermittently used, such as aerial equipment and portable generators. As the company has grown organically and through hundreds of acquisitions since it went public in 1997, its catalog (fleet size of $21 billion) now includes a range of specialty equipment and other items that can be rented for indefinite periods.
Unraveling the Financial Story of United Rentals
Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.
Revenue Growth: United Rentals's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 6.16%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.
Net Margin: United Rentals's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 16.86%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): United Rentals's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 7.76%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): United Rentals's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.34% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: United Rentals's debt-to-equity ratio is below the industry average. With a ratio of 1.68, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
To track all earnings releases for United Rentals visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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