United Rentals Q4 Profit Rises - Update

(RTTNews) - United Rentals Inc. (URI), the largest construction-equipment rental company in the US, reported a surge in profit for the fourth quarter, reflecting higher volumes and rental rates.

Greenwich, Connecticut-based United Rentals' fourth-quarter profit improved to $140 million or $1.31 per share from $41 million or $0.40 per share in the same period last year.

Adjusted earnings for the quarter rose to $1.59 per share from $1.27 per share last year. On average, 16 analysts polled by Thomson Reuters expected earnings of $1.47 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter grew to $1.34 billion from $1.25 billion last year. Analysts expected revenues of $1.33 billion for the quarter.

Equipment rentals, which constitutes majority of revenues, increased to $1.13 billion from $1.04 billion last year. Rental rates rose 4.0 percent, while the volume of equipment on rent advanced 8.2 percent.

Looking ahead to the fiscal year 2014, the company expect revenues in the range of $5.25 billion to $5.45 billion. Analysts currently expect full-year revenues of $5.34 billion.

Chief Executive Michael Kneeland said, "This year, we will continue to implement our strategy to profitably grow the business, drive down leverage and return cash to shareholders. We expect our growth to be supported by higher rental rates, free cash flow generation and an increase in demand from our end markets."

URI closed Thursday's trading at $81.59, up $0.08 or 0.10%, on the NYSE. The stock however dropped $1.17 or 1.43% in after hours trade.