United Rentals Q1 Profit Rises - Update

(RTTNews) - United Rentals Inc. (URI), the largest construction-equipment rental company in the US, Wednesday said its profit for the first quarter surged from a year ago, driven largely by increase in volumes and rental rates. Earnings for the quarter came in ahead of analysts' estimates, while revenues were in line with expectations. Moving ahead, the company lifted its full year revenue outlook.

Greenwich, Connecticut-based United Rentals' first-quarter profit rose to $60 million or $0.56 per share from $21 million or $0.19 per share last year.

Adjusted earnings for the quarter rose to $0.90 per share from $0.58 per share a year ago. On average, 17 analysts polled by Thomson Reuters expected earnings of $0.71 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the first quarter rose to to $1.18 billion from $1.10 billion last year. Thirteen analysts had a consensus revenue estimate of $1.18 billion for the quarter.

Equipment rentals, which constitutes majority of revenues, increased to $1.01 billion from $916 million last year. Rental rates rose 4.3 percent, while the volume of equipment on rent advanced 7.6 percent.

"We're off to a strong start in 2014, with notable year-over-year growth in rates, time utilization and volume," said Chief Executive Michael Kneeland. "Despite the headwind of a harsh winter, we strategically managed our business to capitalize on pockets of opportunity. We now see solid demand in almost every market, giving us further confidence in our full year outlook."

Looking ahead to the fiscal year 2014, the company now expects revenues of $5.45 billion to $5.65 billion, up from its prior outlook of $5.25 billion to $5.45 billion. Analysts currently expect full-year revenues of $5.49 billion.

URI closed Wednesday's trading at $91.49, up $3.00 or 3.39%, on the NYSE. The stock further gained $2.46 or 2.69%, in after-hours trade.