United Rentals Positioned for Strong Q3 Earnings as EPS Grows

As United Rentals announces its Q3 earnings, expectations are high with an anticipated EPS of $12.49, marking a 6.5% increase. With a 37.7% year-to-date stock gain, analysts show a mixed sentiment towards URI, impacting investor outlook significantly.

Date: 07-10-2024

AI Rating: 7

United Rentals, Inc. (URI) is poised to announce its Q3 earnings with notable expectations surrounding its earnings per share (EPS). The report indicates that analysts expect an EPS of $12.49, reflecting a 6.5% increase from the previous year’s $11.73. This expectation is positive, suggesting that investors could view the upcoming earnings as a strong performance indicator.

Additionally, URI has consistently surpassed Wall Street EPS estimates over its last four quarters, enhancing investor confidence. The adjusted EPS for the last quarter was reported at $10.70, exceeding consensus estimates by 2.1%, highlighting a strong operational performance driven by robust equipment rental demand.

Looking further ahead, analysts project URI's EPS to reach $44.39 in fiscal 2024, which is a 9% increase from $40.74 in fiscal 2023. This upward trend in EPS is a positive signal for potential investors, indicating sustained growth in profitability.

However, despite these promising indicators, there is a cautious consensus among analysts with a mixed outlook. Out of 18 analysts, seven recommend a “Strong Buy”, while four suggest a “Strong Sell”. The overall “Hold” rating signifies some uncertainty regarding the stock's valuation, with the average analyst price target set at $713.13, indicating the stock's potential premium.

URI's stock has shown significant performance this year, experiencing a 37.7% increase YTD, which outpaces both the S&P 500 and the Industrial Select Sector SPDR Fund. The positive stock performance could attract further interest from investors, particularly if the forthcoming earnings report aligns with or exceeds expectations.

Stocks: URI