United Rentals Updates 2016 Guidance - Quick Facts

(RTTNews) - United Rentals, Inc. (URI) announced the company now expects its 2016 adjusted EBITDA in a range of $2.70 billion to $2.75 billion compared to previous forecast of $2.65 billion to $2.75 billion. Free cash flow is expected to be in a range of $1.0 billion to $1.1 billion compared to prior outlook of $900 million to $1.0 billion.

United Rentals now expects 2016 total revenue in the range of $5.65 billion to $5.75 billion compared to prior outlook of $5.6 billion to $5.8 billion. Decrease in rental rates is now anticipated to range between 2.1% and 2.3%, compared to prior forecast of a decline between 2.0% and 3.0%. Analysts polled by Thomson Reuters expect revenue of $5.74 billion for the fiscal year.

CEO Kneeland said, "We now expect our 2016 rental rates and adjusted EBITDA to track toward the upper end of prior guidance and free cash flow to exceed our prior expectations. This takes into account our plan to invest up to an additional $50 million in fleet to service specific large contract wins. Looking forward, we remain positive about our operating environment and remind investors of the substantial flexibility we have in managing our business for whatever market conditions materialize."

United Rentals reported third-quarter net income of $187 million, or $2.16 per share, compared to $215 million, or $2.25 per share, for the same period last year. Adjusted EPS was $2.58 compared to $2.57. Adjusted EBITDA was $747 million and adjusted EBITDA margin was 49.5%, reflecting decreases of $33 million and 80 basis points, respectively, from the same period last year.

Total revenue was $1.508 billion and rental revenue was $1.322 billion for the third quarter, compared with $1.550 billion and $1.326 billion, respectively, for the same period last year. Rental revenue (which includes owned equipment rental revenue, re-rent revenue and ancillary items) decreased 0.3% year-over-year.

Shares of United Rentals were up more than 5% after hours.