in

Hot Stock Analysis: United Rentals, Inc. (NYSE: URI)

Shares of United Rentals, Inc. (NYSE: URI) closed the trading at a price of $150.76 with the negative change of -0.72%. In the past session approximately 540,745 shares were exchanged against the average daily trading volume of 1,228,817 shares. The stock touched to the maximum level of $152.91, and it reached the lower level of $150.60 in past session.

United Rentals, Inc. (URI) recently reported financial results for the second quarter 2018. Total revenue was $1.891 B and rental revenue was $1.631 B for the second quarter, contrast with $1.597 B and $1.367 B, respectively, for the same period last year. On a GAAP basis, the company stated second quarter net income of $270M, or $3.20 per diluted share, contrast with $141M, or $1.65 per diluted share, for the same period last year. The second quarter 2018 includes a net income benefit associated with the Tax Cuts and Jobs Act (the “Tax Act”) that was enacted in December 2017. The Tax Act reduced the U.S. federal corporate statutory tax rate from 35% to 21%, which contributed an estimated $0.58 to earnings per diluted share for the second quarter 2018.

Second Quarter 2018 Highlights

  • Rental revenue4raised 19.3% year-over-year. Within rental revenue, owned equipment rental revenue raised 19.3%, reflecting raises of 15.9% in the volume of equipment on rent and 2.8% in rental rates.
  • Pro forma1rental revenue raised 11.4% year-over-year, reflecting growth of 7.1% in the volume of equipment on rent and a 2.8% raise in rental rates.
  • Time utilization reduced 20 basis points year-over-year to 69.2%, primarily reflecting the impact of the Neff acquisition. On a pro forma basis, time utilization was flat year-over-year.
  • The company’s Trench, Power and Pump specialty section’s rental revenue raised by 33.5% year-over-year, including a 21.9% raise on a same store basis. The section’s rental gross margin reduced by 110 basis points to 48.5%.

The company generated $157M of proceeds from used equipment sales at a GAAP gross margin of 41.4% and an adjusted gross margin of 51.6%, contrast with $133M at a GAAP gross margin of 39.1% and an adjusted gross margin of 52.6% for the same period last year. The year-over-year raise in used equipment sales primarily reflects raised volume, driven by a importantly larger fleet size, in a strong used equipment market.

Six Months 2018 Highlights

  • Rental revenue raised 22.0% year-over-year. Within rental revenue, owned equipment rental revenue raised 22.1%, reflecting raises of 20.6% in the volume of equipment on rent and 2.4% in rental rates.
  • Pro forma rental revenue raised 10.7% year-over-year, reflecting growth of 7.0% in the volume of equipment on rent and a 2.8% raise in rental rates.
  • Time utilization reduced 60 basis points year-over-year to 67.2%, primarily reflecting the impact of the NES and Neff acquisitions. On a pro forma basis, time utilization reduced 10 basis points year-over-year.
  • The company’s Trench, Power and Pump specialty section’s rental revenue raised by 34.9% year-over-year, including a 23.7% raise on a same store basis. The section’s rental gross margin raised by 20 basis points to 47.4%.
  • The company generated $338M of proceeds from used equipment sales at a GAAP gross margin of 41.1% and an adjusted gross margin of 53.0%, contrast with $239M at a GAAP gross margin of 41.0% and an adjusted gross margin of 51.9% for the same period last year. The year-over-year raise in used equipment sales primarily reflects raised volume, driven by a importantly larger fleet size, in a strong used equipment market.5

The company has the institutional ownership of 90.00% while the Beta factor was 2.47. The stock’s RSI amounts to 46.84. (URI) debt to equity ratio was 2.84 while current ratio was 0.70.

James Moon

Written by James Moon

James Moon:- Business and Services
I am James Moon and I give “News Stories World” an insight into the most recent news hitting the “Business and Services” sector in Wall Street. I have been an independent financial adviser for over 13 years in the city and in recent years turned my experience in finance and passion for journalism into a full time role. I perform analysis of Companies and publicize valuable information for shareholder community.

Stock in the Spotlight: PTC Inc. (NASDAQ:PTC)

Notable Runner: Winmark Corporation (NASDAQ: WINA)