STAMFORD - United Rentals , Inc. (NYSE:URI) reported a robust first quarter for 2024, surpassing analyst expectations for both earnings per share (EPS) and revenue, and subsequently raised its full-year guidance, buoyed by its recent acquisition of Yak. The company's shares responded positively, rising 2.7% as investors welcomed the news.
For the first quarter, United Rentals announced an adjusted EPS of $9.15, which was $0.78 higher than the analyst consensus of $8.37. Total revenue reached $3.49 billion, topping the consensus estimate of $3.44 billion. The revenue figure also marks an improvement from the same quarter last year, indicating a strong start to the fiscal year.
The company's CEO, Matthew Flannery, attributed the impressive results to strategic growth initiatives, including the acquisition of Yak, and a focus on customer-centric services. Flannery expressed confidence in the company's trajectory for the remainder of the year, noting the updated guidance reflects the financial contribution expected from Yak.
Looking ahead, United Rentals has increased its revenue outlook for the full year 2024, now forecasting between $14.95 billion and $15.45 billion. This updated guidance sits comfortably above the analyst consensus of $15.039 billion. The midpoint of the guidance range, $15.2 billion, suggests a positive outlook compared to the consensus.
The company's acquisition of Yak on March 15, 2024, is anticipated to contribute significantly to the financials, with an expected $300 million in total revenue and $140 million in adjusted EBITDA. This strategic move is seen as a key driver in enhancing United Rentals' specialty rental business and expanding its market presence.
In the first quarter, United Rentals also demonstrated strong cash flow, reporting $1.029 billion in net cash provided by operating activities and $869 million in free cash flow. The company's commitment to shareholder returns was evident, with $485 million returned through share repurchases and dividends.
The positive market response to the earnings release and raised guidance reflects investor optimism about United Rentals' growth prospects and its ability to generate value. The company's solid financial performance and strategic acquisitions position it well for continued success in the competitive rental industry.
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