United Rentals (NYSE: URI) reported Q3 EPS of $5.40, $1.12 better than the analyst estimate of $4.28. Revenue for the quarter came in at $2.19 billion versus the consensus estimate of $2.14 billion.

Third Quarter 2020 Highlights

• Total revenue of $2.187 billion, including rental revenue1 of $1.861 billion.
• Fleet productivity2 decreased 8.0% year-over-year, reflecting the impact of COVID-19 on volumes; fleet productivity improved sequentially by 560 basis points, primarily due to better fleet absorption.
• Net income3 of $208 million, implying a net income margin3 of 9.5%. GAAP diluted earnings per share3 of $2.87, and adjusted EPS3 of $5.40.
• Adjusted EBITDA3 of $1.081 billion, implying an adjusted EBITDA margin3 of 49.4%.
• $827 million of net cash from operating activities; free cash flow4 of $583 million, including gross rental capital spending of $432 million.
• Total liquidity5 at September 30, 2020 of $3.430 billion.

CEO Comment

Matthew Flannery, chief executive officer of United Rentals, said, “We’re pleased with our third quarter results, particularly our cost performance and the quarter-over-quarter improvement in fleet absorption. I am incredibly proud of our team as they continue to provide outstanding support to our customers, while maintaining a strong focus on safety and disciplined execution.”

Flannery continued, “The recovery that we’ve seen since the spring has been evident in most of our markets with demand tracking to normal seasonal patterns. We expect current trends to continue and have raised our full-year 2020 outlook for revenue, profitability and free cash flow. While the pace of the recovery remains uncertain, we are encouraged by the steady improvements we are seeing. Most importantly, we remain confident in our ability to execute well under any market conditions.”

GUIDANCE:

United Rentals sees FY2020 revenue of $8.35-8.45 billion, versus the consensus of $8.36 billion.

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