UPDATE 1-RSC Holdings posts narrower-than-expected Q3 loss

* Q3 loss/shr $0.06 vs loss/shr est $0.14

* Q3 rev falls 32 pct

* Raises FY free cash flow view to $365-$380 mln

* Shares up 4 pct

Oct 29 (Reuters) - RSC Holdings Inc (RRR.N) posted a narrower-than-expected quarterly loss, helped by cost cuts and stable demand and rental rates for its fleet, sending its shares up 4 percent in after-market trade.

For the third quarter, the company reported a net loss of $5.9 million, or 6 cents a share, compared with a net income of $42.4 million, or 41 cents a share, a year ago.

Revenue at the company, which rents out forklifts, backhoes and cranes, fell 32 percent to $315.6 million.

RSC's rental revenue, which accounts for 86 percent of its total revenue, fell 35 percent to $271.6 million.

Analysts on average were expecting the company to post a loss of 14 cents a share, before special items, on revenue of $317.8 million, according to Thomson Reuters I/B/E/S.

The company cut third-quarter rental costs and operating expenses by $57 million from year-ago levels, as it reduced its headcount by 186 employees and closed one location, RSC said in a statement.

RSC expects rental rates to remain under pressure due to a sequential decline in demand during the seasonal slowdown of winter months. However, it raised its full-year free cash flow outlook to $365 million to $380 million.

Shares of the Scottsdale, Arizona-based company were trading up 30 cents at $7.76 after the bell. They closed $7.46 Thursday on the New York Stock Exchange. (Reporting by Fareha Khan in Bangalore; Editing by Pradeep Kurup)