United Rentals sees profits and revenues rise

April 19, 2018 GMT

United Rentals, the world’s largest equipment rentals company, saw profits and revenues increase in the past quarter and announced a major new stock buyback program, according to its latest earnings report released Wednesday.

First-quarter profits surged to $183 million, up 68 percent from a year ago. Revenues for the past three months hit $1.73 billion, rising 28 percent from the same period in 2017.

Equipment rentals accounted for about 85 percent of total returns. The equipment category’s revenues rose about 25 percent, amounting to some $1.46 billion.

The tax reform passed last December by Congress helped to boost earnings. As a result of the new law, United is receiving a one-time, non-cash tax benefit estimated at $746 million, which reflects the revaluation of the company’s net deferred tax liability with the new corporate tax rate of 21 percent.

United also announced Wednesday a new $1.25 billion share repurchase program, which is scheduled to begin later this year, after the completion of an existing $1 billion stock buyback initiative.