United Rentals (URI) Q1 Earnings Report Preview: What To Look For

Equipment rental company United Rentals (NYSE:URI) will be announcing earnings results this Wednesday after the bell. Here’s what to look for.

United Rentals missed analysts’ revenue expectations last quarter, reporting revenues of $4.21 billion, up 2.8% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates and a slight miss of analysts’ revenue estimates.

Is United Rentals a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting United Rentals’s revenue to grow 4.6% year on year, slowing from the 6.7% increase it recorded in the same quarter last year.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. United Rentals has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at United Rentals’s peers in the industrial distributors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Richardson Electronics delivered year-on-year revenue growth of 3.1%, beating analysts’ expectations by 4.4%, and Fastenal reported revenues up 12.4%, in line with consensus estimates. Richardson Electronics traded up 22.7% following the results while Fastenal was down 9.3%.

Read our full analysis of Richardson Electronics’s results here and Fastenal’s results here.

There has been positive sentiment among investors in the industrial distributors segment, with share prices up 11.6% on average over the last month. United Rentals is up 11.2% during the same time and is heading into earnings with an average analyst price target of $977.54 (compared to the current share price of $814.15).

ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all.

Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE.