United Rentals (NYSE: URI) reported Q4 EPS of $5.60, $0.39 better than the analyst estimate of $5.21. Revenue for the quarter came in at $2.46 billion versus the consensus estimate of $2.41 billion.

Matthew Flannery, chief executive officer of United Rentals, said, “Our fourth quarter contributed to a solid year of profitable growth and returns. Results were driven by growth in our core construction end-markets, while challenges in our industrial verticals impacted both revenue and margins in the quarter. For the year, we grew pro forma rental revenue and adjusted EBITDA by over 4%, while integrating our acquisitions, and generated free cash flow of almost $1.6 billion.”

Flannery continued, “Our 2020 outlook reflects the profitable growth we expect to deliver in what is forecasted to be a slower growth phase of this continuing upcycle. We are well positioned to support our customers across the end-markets we serve, while remaining disciplined in our approach to capex. We expect to generate higher free cash flow this year, which is earmarked to pay down debt and buy back shares.”

Share Repurchase Programs

In December 2019, the company completed its previously announced $1.25 billion share repurchase program, through which it acquired approximately 9.5 million shares. Over the course of the program\'s 18 month authorization, the company reduced its shares outstanding by 10.3%.

On January 28, 2020, the company\'s Board of Directors authorized a new $500 million share repurchase program which will commence in the first quarter of 2020. The company intends to complete the new share repurchase program over twelve months.

GUIDANCE:

United Rentals sees FY2020 revenue of $9.4-9.8 billion, versus the consensus of $9.58 billion.

For earnings history and earnings-related data on United Rentals (URI) click here.