United Rentals Net Rises

The first quarter beats by a penny.
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United Rentals

(URI) - Get Report

, an equipment rental company, said that its first-quarter profit rose 66.7%.

The Greenwich, Conn.-based, company earned $20 million, or 19 cents a share, in the quarter, compared with $12 million, or 11 cents a share, a year ago. On that basis, analysts surveyed by Thomson First Call were expecting earnings of 18 cents a share in the most recent quarter.

First-quarter total revenue rose 15.6% from a year ago to $846 million while same store rental revenue rose 13.5%. Analysts were expecting revenue of $805.4 million in the most recent quarter.

The company raised its guidance to $2.17 a share to $2.27 a share on revenue of $4 billion for the full year from the earlier guidance of $2.13 a share to $2.23 a share as against analysts expectation of $2.26 a share, on revenue of $3.99 billion.

Revenue from general rentals segment rose 14.7% to $750 million and revenue from trench safety, pump and power segment rose 44.1% to $49 million. Revenue from traffic control rose 6.8% to $47 million.

The company also announced that it is continuing to cooperate fully with the SEC regarding an inquiry that appears to relate to a broad range of the company's accounting practices.

"Improved rental rates and higher time utilization on a larger rental fleet, together with excellent contractor supplies growth, helped us continue our strong performance this quarter," the company said. "We achieved record first quarter dollar utilization of 58.6%. We are continuing to make significant strategic investments to take advantage of the growth opportunities in our market. We remain focused on driving revenue growth, improving our margins and increasing our return on capital."

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