United Rentals stock gains after earnings as company plans to start paying a dividend, buying back stock again
Shares of United Rentals Inc. (URI) were up about 4% in after-hours trading Wednesday after the company announced alongside is latest earnings that it was instituting a dividend and bringing back its buyback program. United Rentals reported fourth-quarter net income of $639 million, or $9.15 a share, compared with $481 million, or $6.61 a share, in the year-prior quarter. On an adjusted basis, the company earned $9.74 a share, up from $7.39 a share a year before, while the FactSet consensus was for $10.14 a share. Revenue rose to $3.30 billion from $2.78 billion, whereas analysts had been looking for $3.30 billion. For 2023, the company anticipates $13.7 billion to $14.2 billion in total revenue, along with $6.60 billion to $6.85 billion in adjusted earnings before interest, taxes, depreciation, and amortization (Ebitda). The FactSet consensus was for $13.3 billion in revenue and $6.3 billion in adjusted Ebitda. Jefferies analyst Stephen Volkmann wrote that not all Wall Street estimates included contributions from the company's Ahern acquisition. The company announced that it was initiating a quarterly dividend of $1.48 a share and restarting its stock-buyback program, with plans to repurchase $1 billion in stock this year.
(END) Dow Jones Newswires
January 25, 2023 17:20 ET (22:20 GMT)
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