NYSE$URI

United Rentals Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Announced third quarter results and raised full-year guidance.

United Rentals announced strong third quarter results, driven by cost performance and improved fleet absorption, and raised its full-year 2020 guidance for revenue, profitability and free cash flow.

  • Total revenue of $2.187 billion, including rental revenue of $1.861 billion.
  • Fleet productivity decreased 8.0% year-over-year, but improved sequentially by 560 basis points.
  • Net income of $208 million, with GAAP diluted earnings per share of $2.87, and adjusted EPS of $5.40.
  • Adjusted EBITDA of $1.081 billion, implying an adjusted EBITDA margin of 49.4%.

Headline financials

Total Revenue

$2.19B

Previous: $2.49B-12.1%
EPS (adj)

$5.40

Previous: $5.96-9.4%
Adjusted EBITDA Margin

49.4%

Previous: 48.5%+1.9%
Net Leverage Ratio

2.4

Previous: 2.6-7.7%
Fleet Productivity

-8.0%

Previous: 0.0%
Capital Expenditures

-$145M

Previous: -$157M+7.6%
Free Cash Flow

$63M

Previous: $234M-73.1%
Net Income

$208M

Previous: $391M-46.8%
Operating Income

$551M

Previous: $656M-16.0%
Gross Profit

$886M

Previous: $1.03B-14.2%
Cash & Equivalents

$174M

Previous: $60M+190.0%
Total Assets

$17.9B

Previous: $19.4B-7.7%
Stock-Based Comp

$18M

Previous: $14M+28.6%

Revenue & EPS history

United Rentals · Revenue · Quarterly

$2.19B

Q3 2020-12.1%vs Q3 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

United Rentals · $1.86B total across 2 segments · Q3 2020

  • General Rentals
    $1.39B-15.3%
  • Specialty Rentals
    $470M-6.9%

Forward guidance

The company raised its full-year 2020 outlook for revenue, profitability and free cash flow.

Tailwinds

  • Total revenue between $8.35 billion and $8.45 billion.
  • Adjusted EBITDA between $3.825 billion to $3.875 billion.
  • Net rental capital expenditures after gross purchases between $100 million to $150 million, after gross purchases of $900 million to $950 million.
  • Net cash provided by operating activities between $2.45 billion to $2.55 billion.
  • Free cash flow (excluding the impact of merger and restructuring related payments) between $2.2 billion to $2.3 billion.

Headwinds

  • Uncertainty regarding the length of time it will take to slow the spread of COVID-19.
  • The extent to which businesses in and associated with the construction industry continue to be deemed “essential”.
  • The impact of global economic conditions and public health crises and epidemics, such as COVID-19, on us, our customers and our suppliers.
  • The possibility that companies that we have acquired or may acquire, could have undiscovered liabilities or involve other unexpected costs, may strain our management capabilities or may be difficult to integrate.
  • The cyclical nature of our business, which is highly sensitive to North American construction and industrial activities.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+3.1%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+4.7%

Avg return

30 days after

70%

46 / 66 earnings

Positive

+25.8%

Q1 2026

Best reaction

-19.9%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+25.8%+19.9%+16.9%
Q4 2025-7.9%-12.2%-7.0%
Q3 2025-7.8%-11.7%-19.3%
Q2 2025-1.4%-2.1%+1.8%
Q1 2025+9.9%+7.0%+18.8%
Q4 2024+2.1%-0.6%-15.3%
Q3 2024-2.7%-2.7%+0.2%
Q2 2024+1.4%+0.1%+0.1%
Q1 2024+4.5%+7.8%+1.8%
Q4 2023+12.7%+12.1%+13.9%
Q3 2023-0.6%+1.1%+15.0%
Q2 2023-2.0%+3.2%-0.2%
Q1 2023-5.3%-4.2%-7.1%
Q4 2022+9.6%+8.9%+14.4%
Q3 2022+1.2%+7.0%+21.7%
Q2 2022+10.4%+15.7%+10.9%
Q1 2022+5.4%+1.6%-1.6%
Q4 2021+3.7%+3.8%+2.6%
Q3 2021+2.8%+7.3%+1.4%
Q2 2021-1.3%-0.1%+8.7%
Q1 2021+0.8%-0.9%+2.8%
Q4 2020+2.2%+2.0%+19.8%
Q3 2020-0.9%+10.2%+33.2%
Q2 2020-0.9%+0.8%+15.3%
Q1 2020+10.3%+0.2%+19.2%
Q4 2019-5.9%-7.3%-12.0%
Q3 2019+6.0%+7.4%+27.9%
Q2 2019-12.0%-14.2%-21.5%
Q1 2019+7.9%+7.5%+0.2%
Q4 2018+4.3%+5.5%+15.7%
Q3 2018-16.4%-18.6%-18.6%
Q2 2018+2.9%-1.9%-1.1%
Q1 2018-5.2%-7.8%-4.3%
Q4 2017-2.1%-2.9%-3.6%
Q3 2017+0.7%-1.3%+4.7%
Q2 2017+4.3%+0.8%-4.8%
Q1 2017-5.5%-5.3%-8.1%
Q4 2016+11.8%+13.3%+9.3%
Q3 2016+3.5%+0.2%+19.0%
Q2 2016+12.2%+15.3%+18.1%
Q1 2016+6.1%
Q4 2015-19.9%
Q3 2015+11.6%
Q2 2015-15.0%
Q1 2015-3.1%
Q4 2014+1.8%
Q3 2014+7.8%
Q2 2014+2.2%
Q1 2014+5.6%
Q4 2013+2.2%
Q3 2013+7.9%
Q2 2013+7.9%
Q1 2013+1.1%
Q4 2012+0.5%
Q3 2012+17.3%
Q2 2012-13.4%
Q1 2012+10.4%
Q1 2011+13.5%
Q4 2009+0.6%
Q4 2011+0.6%
Q3 2010+14.7%
Q3 2011+14.7%
Q4 2010+11.3%
Q2 2010+11.3%
Q2 2011+11.3%
Q1 2010+16.6%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro