5 big analyst AI moves: Apple lifted to Buy, AI chip bets reassessed
STAMFORD, Conn. - United Rentals, Inc. (NYSE:URI) shares tumbled 3.6% after the equipment rental giant reported third-quarter earnings that fell short of analyst expectations, despite posting better-than-expected revenue and raising its full-year guidance.
The company reported adjusted earnings of $11.70 per share for the third quarter, missing the analyst consensus of $12.32, while revenue came in at $4.23 billion, exceeding expectations of $4.16 billion. Revenue increased 5.8% YoY, with rental revenue reaching a third-quarter record of $3.67 billion. The company’s net income decreased 1.0% YoY to $701 million, with net income margin declining 110 basis points to 16.6%.
The earnings miss appeared to overshadow United Rentals’ decision to raise its 2025 full-year guidance for total revenue to $16.0-16.2 billion from $15.8-16.1 billion previously, citing strong customer demand. The company also increased its capital spending outlook.
"Our third-quarter results were again supported by our unrelenting focus on being the partner of choice to our customers as we serve their needs across both construction and industrial end-markets," said Matthew Flannery, chief executive officer. "Our team did an outstanding job as we continued to lean into growth across both our general rentals and specialty businesses."
Fleet productivity increased 2.0% YoY, while the company’s specialty rentals segment saw revenue jump 11.4% compared to the same period last year. However, rental gross margins decreased in both segments, with specialty rentals margin falling 490 basis points to 45.1%, primarily due to higher depreciation expense and inflation.
United Rentals maintained a strong liquidity position of $2.45 billion at quarter-end, with a net leverage ratio of 1.86x. The company also declared a quarterly dividend of $1.79 per share, payable on November 26.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.