STAMFORD, Conn. – United Rentals , Inc. (NYSE:) reported third-quarter earnings that fell short of analyst expectations, sending shares down 3.3% in after-hours trading on Wednesday.
The equipment rental company posted adjusted earnings per share of $11.80, missing the consensus estimate of $12.56. Revenue came in at $3.99 billion, slightly below the $4.01 billion analysts were expecting.
Despite the miss, United Rentals saw solid YoY growth, with total revenue increasing 7.4% to $3.992 billion. Rental revenue, which makes up the bulk of the company’s business, rose 7.4% to $3.463 billion.
“We were pleased with our record third-quarter results, which were in-line with our expectations and reflected continued growth across both our construction and industrial end-markets,” said CEO Matthew Flannery.
The company narrowed its full-year 2024 guidance ranges while maintaining the midpoints. United Rentals now expects total revenue of $15.1 billion to $15.3 billion, compared to its previous forecast of $15.05 billion to $15.35 billion.
Adjusted EBITDA is projected to be between $7.115 billion and $7.215 billion for the year. The company also expects net cash provided by operating activities of $4.40 billion to $4.80 billion.
United Rentals’ fleet productivity, a key metric, increased 3.5% YoY in Q3. The company’s net income margin decreased 100 basis points to 17.7%, primarily due to increased selling, general and administrative expenses.
While the quarterly results missed estimates, United Rentals maintained an optimistic outlook on long-term trends. “Longer-term, we remain optimistic on the multiple secular tailwinds we see, particularly across large projects,” Flannery added.
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