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United Rentals Inc (NYSE:URI) has shattered records and set the bar high after beating Q4 revenue estimates and unveiling optimistic revenue guidance for 2024, which sent its shares soaring post-market close on Wednesday.
The quarter saw a remarkable 13.5% year-over-year surge in rental revenues, reaching an unprecedented $3.2B. The company attributes this success to robust demand and the transformative effect of the Ahern Rentals acquisition, surpassing estimates by $80M.
The company’s adjusted earnings per share stood at $11.26, up from $9.74 a year ago and outperforming the consensus estimate by $0.26.
Looking ahead to 2024, United Rentals anticipates revenue to fall between $14.65B to $15.15B, aligning closely with the Street’s estimate of $14.78B.
In a bullish statement, CEO Matthew Flannery said, “We are now excited to deliver on the growth we expect in 2024, supported by our strength on large projects. Our guidance reflects the opportunities we see across our business as we leverage our competitive advantage to support our customers and outpace the market.”
The company’s board has given the green light to an enhanced capital allocation strategy, aiming to maintain equilibrium between growth and returns. The updated balance sheet strategy involves lowering its targeted full-cycle leverage range to 1.5x-2.5x from the 2019 range of 2.0x-3.0x. As of the end of 2023, the company’s net leverage ratio stood at 1.6x.
Lastly, United Rentals has raised its quarterly dividend by 10% to $1.63 per share, payable on Feb. 28 to shareholders of record as of Feb. 14.
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