United Rentals Q4 Beats Expectations, CAT Earnings On Tap As The Dow’s Wild Week Continues

United Rentals (URI) reported fourth-quarter results that topped Wall Street expectations Wednesday. Caterpillar (CAT) is also expected to report rising earnings and revenue when it announces results Friday.

The construction market got a jolt after Congress finally passed the infrastructure bill in November. But analysts say that the real uptick in equipment and materials demand probably won’t be realized until 2023. The bill’s spending is focused on roads and bridges, airports, water infrastructure and modernizing the electric grid.

United Rentals Earnings

Estimates: FactSet analysts see earnings jumping 33% to $6.72 per share. Revenue is seen rising 20% to $2.73 billion.

Results: EPS of $7.39 on revenue of $2.78 billion. Rental revenue climbed 25% year-over-year to $2.3 billion.

United Rental’s board authorized a $1 billion share repurchase program, scheduled to start in Q1.

“Our larger, more diverse value proposition should both benefit the top line and strengthen our levers for delivering strong margins, cash generation and returns in this new upcycle,” CEO Matthew Flannery said in the earnings release.

Outlook: United Rentals sees 2022 revenue of $10.65 billion to $11.05 billion. FactSet expects $10.7 billion.

Stock: Shares jumped 3.1% to 317.31 in after-hours trading on the stock market today. URI stock is below its key 50-day and 200-day lines after the stock hit a new high in November.

CAT Earnings

Estimates: EPS seen climbing 6.6% to $2.26 with revenue up 17% to $13.16 billion.

Results: Check back before the market opens Friday.

Stock: Shares closed down flat at 214.29 Wednesday. CAT stock has now formed a handle on its consolidation going back to early June, with a buy point of 230.43.

Investors should be extra cautious about buying a stock ahead of earnings. Even the slightest perceived miss on Wall Street’s expectations could cause the stock to tumble.

The Dow Jones giant is the top-ranked stock in IBD’s Machinery-Construction/Mining group.

Follow Gillian Rich on Twitter for investing news and more.


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Estimates: FactSet analysts see earnings jumping 33% to $6.72 per share. Revenue is seen rising 20% to $2.73 billion.


Donovan Larsen

Donovan is a columnist and associate editor at the Dark News. He has written on everything from the politics to diversity issues in the workplace.

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