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Valued at a market cap of $50.3 billion, United Rentals, Inc. (URI) is a prominent equipment rental provider. The company, headquartered in Stamford, Connecticut, offers a broad suite of equipment solutions serving industrial and construction firms, utilities, municipalities, and homeowners. United Rentals is set to announce its Q2 earnings on Wednesday, Jul. 23.
Ahead of the event, analysts expect URI to report a profit of $10.59 per share, down 1% from $10.70 per share in the year-ago quarter. The company has surpassed Wall Street’s EPS estimates in two of its last four quarterly reports, while missing on two other occasions.
For fiscal 2025, analysts expect URI to report EPS of $43.63, up 1.1% from $43.17 in fiscal 2024. Looking ahead, its EPS is expected to grow 9.5% annually to $47.77 in 2026.
URI stock has surged 22% over the past year, surpassing the broader S&P 500 Index's ($SPX) 13% rise but slightly trailing the Industrial Select Sector SPDR Fund's (XLI) 22.2% plunge over the same time frame.
On April 23, URI reported its Q1 results, and its shares popped over 9% in the next trading day. It posted a 6.7% year-over-year increase in total revenue to $3.72 billion, driven by record rental revenue of $3.15 billion. Its adjusted EPS stood at $8.86 and the EBITDA margin was 44.9%. Specialty rentals led growth with a 21.8% revenue surge.
The company generated over $1 billion in free cash flow and returned $368 million to shareholders through dividends and buybacks, while also launching a new $1.5 billion repurchase program. Reaffirming its full-year guidance, United Rentals expressed confidence heading into peak season, supported by strong fleet productivity and robust demand across its customer base.
The consensus opinion on URI stock is reasonably upbeat, with an overall “Moderate Buy” rating. Of 20 analysts covering the stock, ten advise a “Strong Buy” rating, one suggests a “Moderate Buy,” seven suggest a “Hold,” and two suggest a “Strong Sell.” URI currently trades above its average analyst price target of $758.39.
