United
Rentals Inc. 's URI 2.59% first-quarter profit rose 62% on the income of the rental equipment
company continued to strengthen.
However, the shares fell 4.2% to $ 50 after hours as earnings per share fell short of analyst expectations. Through the close, the stock is up 15% since early this year.
United Rentals has posted strong revenue growth amid a trend towards renting instead of owning industrial equipment and construction.
United Rentals has also benefited from the acquisition of RSC Holdings Inc., which it acquired last year in a deal that was intended to increase its presence in North America and accelerate its growth with industrial customers.
United Rentals reported a profit of $ 21 million, or 19 cents per share, compared to $ 13 million, or 17 cents per share, a year earlier. Excluding merger-related costs and other items, adjusted earnings rose to 58 cents per share from 36 cents per share. Analysts polled by Thomson Reuters recently projected earnings of 48 cents per share.
Revenue rose 68% to $ 1.1 billion, just below the estimate of $ 1.11 billion analysts.
On a pro forma basis, which is the combination of United Rentals and RSC results in the first quarter of 2012, rental income increased by 5.4%.
Moreover, when considered as if RSC Holdings was owned by all of 2012, equipment rental volume increased 5.8% and rental rates improved by 5.4%. The time of use rate increased 30 basis points to 64.2%.
The company reaffirmed its annual forecast.
However, the shares fell 4.2% to $ 50 after hours as earnings per share fell short of analyst expectations. Through the close, the stock is up 15% since early this year.
United Rentals has posted strong revenue growth amid a trend towards renting instead of owning industrial equipment and construction.
United Rentals has also benefited from the acquisition of RSC Holdings Inc., which it acquired last year in a deal that was intended to increase its presence in North America and accelerate its growth with industrial customers.
United Rentals reported a profit of $ 21 million, or 19 cents per share, compared to $ 13 million, or 17 cents per share, a year earlier. Excluding merger-related costs and other items, adjusted earnings rose to 58 cents per share from 36 cents per share. Analysts polled by Thomson Reuters recently projected earnings of 48 cents per share.
Revenue rose 68% to $ 1.1 billion, just below the estimate of $ 1.11 billion analysts.
On a pro forma basis, which is the combination of United Rentals and RSC results in the first quarter of 2012, rental income increased by 5.4%.
Moreover, when considered as if RSC Holdings was owned by all of 2012, equipment rental volume increased 5.8% and rental rates improved by 5.4%. The time of use rate increased 30 basis points to 64.2%.
The company reaffirmed its annual forecast.
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