United Rentals (URI) reported its third-quarter results on Wed., Oct 27. Both earnings and revenue came in below market estimates, with actual earnings 3.24% lower than analysts' predictions. Yesterday, Oct. 27, URI stock closed down 2.70% in price.
Rental Revenue Recovery
While earnings came in below estimates, the company's net income was up $409 million from the same period last year. The company pointed out that rental revenue for the third quarter hit $2.277 billion, which was a 22.4% gain year-over-year. This Q3 2021 increase “reflects the pronounced impact of COVID-19 in the third quarter of 2020, in addition to the continuing recovery of activity across the end-markets served by the company.”
United Rentals Raises Full-Year Guidance
The company also updated its 2021 outlook. Regarding total revenue, the prior outlook clocked in at $9.45 billion to $9.75 billion, while the current outlook is in the ballpark of $9.60 billion to $9.75 billion.
CEO Outlook Comments
“While early in our planning process, virtually all key indicators point to a sustained recovery,” CEO Matthew Flannery remarked. “At this same time, the industry has remained disciplined and our strategic partnerships with key suppliers will benefit the company as we invest in fleet to support our customers. Combined, this should position us to deliver strong growth, improved margins and attractive returns in 2022.”
