Yahoo Finance United Rentals, Inc. Just Beat EPS By 5.9%: Here's What Analysts Think Will Happen Next
It's been a good week for United Rentals, Inc. (NYSE:URI) shareholders, because the company has just released its latest quarterly results, and the shares gained 9.2% to US$691. United Rentals reported US$3.5b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$8.04 beat expectations, being 5.9% higher than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on United Rentals after the latest results.
See our latest analysis for United Rentals
Taking into account the latest results, the current consensus from United Rentals' 21 analysts is for revenues of US$15.1b in 2024. This would reflect an okay 3.8% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 7.0% to US$40.06. Before this earnings report, the analysts had been forecasting revenues of US$15.0b and earnings per share (EPS) of US$39.72 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$688. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values United Rentals at US$1,125 per share, while the most bearish prices it at US$400. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that United Rentals' revenue growth is expected to slow, with the forecast 5.1% annualised growth rate until the end of 2024 being well below the historical 11% p.a. growth over the last five years. Compare this to the 59 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 5.7% per year. Factoring in the forecast slowdown in growth, it looks like United Rentals is forecast to grow at about the same rate as the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple United Rentals analysts - going out to 2026, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 2 warning signs for United Rentals that you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
