What To Expect From United Rentals’s (URI) Q3 Earnings

Equipment rental company United Rentals (NYSE:URI) will be announcing earnings results tomorrow after market hours. Here’s what to expect.

United Rentals met analysts’ revenue expectations last quarter, reporting revenues of $3.77 billion, up 6.2% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ operating margin estimates but a miss of analysts’ organic revenue estimates.

Is United Rentals a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting United Rentals’s revenue to grow 6.4% year on year to $4.01 billion, slowing from the 23.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $12.49 per share.

Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 5 downward revisions over the last 30 days (we track 14 analysts). United Rentals has missed Wall Street’s revenue estimates twice over the last two years.

Looking at United Rentals’s peers in the industrial distributors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Richardson Electronics delivered year-on-year revenue growth of 2.2%, beating analysts’ expectations by 8.7%, and Fastenal reported revenues up 3.5%, in line with consensus estimates. Richardson Electronics traded down 2.5% following the results while Fastenal was up 9.6%.

Read our full analysis of Richardson Electronics’s results here and Fastenal’s results here.

There has been positive sentiment among investors in the industrial distributors segment, with share prices up 2.3% on average over the last month. United Rentals is up 4.1% during the same time and is heading into earnings with an average analyst price target of $767.71 (compared to the current share price of $832).

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