United Rentals dropped 5.2% to $113.24 today, while the S&P 500 rose 0.8% to 2,355.84
RBC’s Seth Weber and team explain why investors frowned on United Rentals’ earnings report:
Adjusted EBITDA came in below consensus, as strong rental volume growth was tempered by weaker than expected rental rate and some higher expenses. Although volume growth was better than expected and rate performance improved through the quarter, we expect the lower y/y rental rate to rekindle concerns over industry equipment supply, particularly heading into the key construction season.
United Rentals’ market capitalization fell to $9.6 billion today from $10.1 billion yesterday.