United Rentals, Inc. (NYSE:URI) Just Released Its Yearly Results And Analysts Are Updating Their Estimates

United Rentals, Inc. (NYSE:URI) came out with its annual results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. United Rentals reported in line with analyst predictions, delivering revenues of US$15b and statutory earnings per share of US$38.69, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for United Rentals

Taking into account the latest results, the most recent consensus for United Rentals from 17 analysts is for revenues of US$15.8b in 2025. If met, it would imply a reasonable 2.9% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 6.2% to US$41.86. In the lead-up to this report, the analysts had been modelling revenues of US$15.8b and earnings per share (EPS) of US$42.92 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

The consensus price target held steady at US$835, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on United Rentals, with the most bullish analyst valuing it at US$1,238 and the most bearish at US$565 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that United Rentals' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.9% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.4% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than United Rentals.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for United Rentals. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$835, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on United Rentals. Long-term earnings power is much more important than next year's profits. We have forecasts for United Rentals going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for United Rentals that you need to take into consideration.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.