United Rentals Tops Q4 Estimates: Key Highlights and Investment Considerations

Q4 CY2024 Results

* Revenue: $4.10 billion, exceeding analyst expectations by 3.9% (9.8% year-over-year growth)
* Adjusted EPS: $11.59, in line with consensus estimates
* Adjusted EBITDA: $1.9 billion, surpassing estimates by 1% (46.4% margin)

Guidance for FY2025

* Revenue: $15.85 billion, in line with analyst expectations (3.3% growth)
* EBITDA: $7.33 billion, slightly below estimates

Key Metrics

* Operating margin: 26.5%, down from 28.5% in Q4 2023
* Free cash flow margin: 20.7%, down from 30.8% in Q4 2023

Sales Growth

* 10.4% compounded annual growth rate over the last five years
* 14.8% annualized revenue growth over the last two years
* 3.4% projected revenue growth over the next 12 months

Operating Margin

* 25.5% average operating margin over the last five years
* 2 percentage point decline in operating margin in Q4 2024

Earnings Per Share (EPS)

* 17.1% compounded annual growth rate in EPS over the last five years
* 15.2% annual EPS growth over the last two years
* $11.59 EPS in Q4 2024, up from $11.26 in Q4 2023

Investment Considerations

* Strong revenue performance exceeding expectations
* Slightly below-target EBITDA guidance
* Positive long-term growth trends
* Mixed performance in profitability metrics

Recommendation

To assess the attractiveness of United Rentals as an investment opportunity, consider the full picture of valuation, business qualities, and earnings as outlined in our comprehensive research report.