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Buoyed by better-than-expected Q4 results and upbeat 2024 revenue guidance, shares of United Rentals Inc (NYSE:URI) are higher after Wednesday’s close.
Rental revenue for the quarter increased by 13.5% year-over-year to a record $3.2B, attributed to strong demand and the impact of the acquisition of Ahern Rentals. This beat the consensus estimate by $80M.
On an adjusted basis, the company earned a profit of $11.26 per share, up from $9.74 a year ago, and $0.26 better than the consensus estimate.
Looking ahead to 2024, the company forecasts revenue to be between $14.65B to $15.15B, straddling the Street estimate of $14.78B.
“We are now excited to deliver on the growth we expect in 2024, supported by our strength on large projects. Our guidance reflects the opportunities we see across our business as we leverage our competitive advantage to support our customers and outpace the market,” CEO Matthew Flannery said.
Recently, the company’s board approved an enhanced capital allocation strategy to remain focused on balancing growth and returns. The new balance sheet strategy includes lowering its targeted full-cycle leverage range to 1.5x-2.5x from the range adopted in 2019 of 2.0x-3.0x. As of the end of 2023, the company’s net leverage ratio was 1.6x.
Finally, the company raised its quarterly dividend by 10% to $1.63 per share, payable on Feb. 28 to shareholders of record as of Feb. 14.
