United Rentals Reaffirms 2016 Outlook; Shares Surge As Q2 Profit Beats Estimates

(RTTNews) - United Rentals, Inc. (URI) has reaffirmed its 2016 outlook for revenue, adjusted EBITDA and free cash flow. The company continues to expect: total revenue in a range of $5.6 billion to $5.8 billion; and adjusted EBITDA in a range of $2.65 billion to $2.75 billion.

Adjusted earnings per share for the second-quarter was $2.06, compared with $1.95 for the same period last year. Adjusted EBITDA was $679 million and adjusted EBITDA margin was 47.8%, reflecting decreases of $27 million and 160 basis points, respectively, from the same period last year. On average, 18 analysts polled by Thomson Reuters expected the company to report profit per share of $1.82 for the quarter. Analysts' estimates typically exclude special items.

On a GAAP basis, the company reported second quarter net income of $134 million, or $1.52 per share, compared with $86 million, or $0.88 per share, for the same period last year. Total revenue was $1.421 billion and rental revenue was $1.204 billion for the second quarter, compared with $1.429 billion and $1.220 billion, respectively, for the same period last year. Analysts expected revenue of $1.4 billion for the quarter.

Shares of United Rentals were up more than 9% after hours.