Free Research Report as United Rentals’ Revenue Surged 26%; Adjusted EPS Advanced 25%
Stock Monitor: TAL Education Group Post Earnings Reporting
LONDON, UK / ACCESSWIRE / January 30, 2018 / Active-Investors.com has just released a free earnings report on United Rentals, Inc. (NYSE: URI). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=URI. United Rentals reported its fourth quarter and fiscal 2017 operating and financial results on January 24, 2018. The equipment rental Company surpassed revenue expectations, while earnings were in-line with market expectations. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is currently working on the research report for TAL Education Group (NYSE: TAL), which also belongs to the Services sector as the Company United Rentals. Do not miss out and become a member today for free to access this upcoming report at:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, United Rentals most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
www.active-investors.com/registration-sg/?symbol=URI
Earnings Highlights and Summary
For the fourth quarter of 2017, United Rentals' total revenue was $1.92 billion, up 26.3% compared to $1.52 billion for Q4 2016. The Company's revenue numbers topped analysts' estimates of $1.88 billion.
For the full year 2017, United Rentals' total revenue was $6.64 billion compared to $5.762 billion for 2016.
For Q4 2017, United Rentals' adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) was $947 million and adjusted EBITDA margin was 49.3% compared to $749 million and 49.2%, respectively, for Q4 2016.
On a GAAP basis, United Rentals reported Q4 2016 net income of $897 million, or $10.45 per diluted share, compared to $153 million, or $1.80 per diluted share, for Q4 2016. The Company's reported quarter results included a net income benefit estimated at $689 million, or $8.03 per diluted share, associated with the enactment of the Tax Cuts and Jobs Act of 2017.
United Rentals' adjusted earnings per share (EPS) was $11.37 per diluted share for Q4 2017 compared to $2.67 for Q4 2016. Excluding the estimated $8.03 per share benefit associated with the enacted tax reform, the Company's adjusted earnings for the reported quarter would have been $3.34, meeting Wall Street's estimates of $3.34 per share.
United Rentals' GAAP basis net income was $1.35 billion, or $15.73 per diluted share, in FY17 compared to $566 million, or $6.45 per diluted share, for FY16. In 2017, the Company's results included a net income benefit estimated at $689 million, or $8.05 per diluted share, associated with the enactment of the Tax Cuts and Jobs Act of 2017. The Company's adjusted EPS was $18.64 per diluted share for FY17 compared to $8.65 per diluted share for 2016. Excluding the estimated $8.05 per share benefit associated with the enacted tax reform, the Company's adjusted EPS would have been $10.59 for 2017.
Segment Results
For Q4 2017, United Rentals' rental revenue surged 26.8% to $1.65 billion compared to $1.30 billion for Q4 2016. Within rental revenue, owned equipment rental revenue increased 26.5%, reflecting increases of 28.7% in the volume of equipment on rent and 1.1% in rental rates.
During Q4 2017, United Rentals' pro-forma rental revenue increased 11.5% on a y-o-y basis, reflecting growth of 8.8% in the volume of equipment on rent and a 2.0% increase in rental rates. The Company's reported quarter time utilization increased 70 basis points y-o-y to 70.0%.
United Rentals' Trench, Power and Pump specialty segment's rental revenue increased by 38.7% on a y-o-y basis, primarily on a same store basis, while the segment's rental gross margin improved by 230 basis points to 47.5%.
During Q4 2017, United Rentals generated $172 million of proceeds from used equipment sales at a GAAP gross margin of 39.0% and an adjusted gross margin of 57.6% compared to $135 million of proceeds at a GAAP gross margin of 43.0% and an adjusted gross margin of 49.6% for Q4 2016.
Free Cash Flow and Fleet Size
For the full year 2017, United Rentals' net cash provided by operating activities was $2.23 billion, and free cash flow was $907 million after total rental and non-rental gross capital expenditures of $1.89 billion. For the full year 2016, the Company's net cash provided by operating activities was $1.95 billion, and free cash flow was $1.18 billion after total rental and non-rental gross capital expenditures of $1.34 billion.
United Rentals' size of the rental fleet was $11.51 billion of original equipment cost at December 31, 2017, compared to $8.99 billion at December 31, 2016. The age of the Company's rental fleet was 47.0 months on an OEC-weighted basis at December 31, 2017, compared to 45.2 months at December 31, 2016.
United Rentals' return on invested capital was 8.8% for the year ended December 31, 2017, an increase of 50 basis points y-o-y.
Stock Performance Snapshot
January 29, 2018 - At Monday's closing bell, United Rentals' stock declined 2.64%, ending the trading session at $180.47.
Volume traded for the day: 2.00 million shares, which was above the 3-month average volume of 1.14 million shares.
Stock performance in the last month – up 5.25%; previous three-month period – up 27.78%; past twelve-month period – up 40.71%; and year-to-date – up 4.98%
After yesterday's close, United Rentals' market cap was at $15.28 billion.
Price to Earnings (P/E) ratio was at 11.49.
The stock is part of the Services sector, categorized under the Rental & Leasing Services industry.
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