* Q4 adj EPS of $1.27 vs est $1.01
* Sees FY13 rev $4.9 bln-$5.1 bln vs est $5.18 bln
* Equipment rental rates up 6 pct
* Equipment rental volume up 7.2 pct
Jan 23 Equipment rental company United Rentals
Inc posted a better-than-expected quarterly profit,
boosted by both an increase in volumes and rental rates, but
forecast full-year revenue below analysts' estimates.
The company's stock fell as much as 3 percent in trading
after the bell on the forecast, but analysts believe United
Rentals will beat its own forecast.
"The management team has a track record of being
conservative with their guidance, if you look at the past six
quarters they have beat their own guidance and also beat the
Street," Piper Jaffray analyst George Tong said.
United Rentals, which rents out forklifts, water pumps,
diesel generators, earthmoving and trench safety equipment, said
the volume of equipment on rent rose 7.2 percent while rental
rates rose 6 percent in the fourth quarter.
The U.S. construction market has shown steady signs of
recovery but the company has also benefited from increased
exposure to industrial and non-construction markets.
The company expects full-year revenue of between $4.9
billion and $5.1 billion. Analysts on average were expecting
revenue of $5.18 billion, according to Thomson Reuters I/B/E/S.
Net income rose to $41 million or 40 cents per share, in the
fourth quarter, from $29 million or 39 cents per share a year
earlier. Excluding special items, the company earned $1.27 per
Analysts on average were expecting earnings of $1.01 per
share, on revenue of $1.26 billion.
Shares of the Greenwich, Connecticut-based company, which
has a market valuation of about $4.6 billion, closed at $49.43
on the New York Stock Exchange.