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United Rentals shares are down 7.7% after hours and normally that’s a terrible sign for the real economy but I’d argue against that take today.
Shares have plunged to $925 from $990 at the close at $1008 earlier today. Part of the drop is because some major expectations have been building as shares ripped to $1000 from $525 at the April lows.
With a chart like this, any kind of miss was going to be punished.
The miss in this case was on margins as the company cited an inflationary environment and rising costs. That led to adusted EPS of $11.70 compared to $12.30 expected.
The cost side could be an issue for companies more broadly but it doesn’t appear that demand is waning, which is a good sign. The company beat on revenues ($4.23B vs $4.16B exp) and boosted its full-year forecast to $16.0-16.2 billion from $15.8-$16.1 billion.
The contrasted with a diminished free cash flow forecast at $2.1-2.3 billion vs $2.4-$2.6 billion previously.
The company didn’t offer much in terms of macro hints in the release except this from Matthew Flannery, chief executive officer:
“Looking
ahead, we are encouraged by the growth opportunities our customers see
on the horizon, particularly within large projects and across key
verticals”
The conference call is Thursday at 8:30 am ET.
This article was written by Adam Button at investinglive.com.
Shares of Tesla fell on earnings and have continued lower so far during the conference call. The company warned about “near-term uncertainty” on sales and profits but said there were long-term growth prospects. Revenues topped estimates but earnings missed.
Details:
Note that this was the final quarter of US subsidies and sales were at a record in the US but that will rapidly unwind in Q4 due to pull-forward demand as the $7000 credit disappears.
On the call:
The proper self-driving could be a big tailwind but if that doesn’t happen, the drop off in regulatory credits and subsidies for EVs are going to make it very hard for Tesla to turn a profit in 2026, particularly if the energy storage business is struggling.
This article was written by Adam Button at investinglive.com.
Oil prices rose 3.7% today in their best day since July as the sanctions likely leaked out ahead of time, and then rose further afterwards. WTI was last at $59.38.
Trump separately said the he’s going to stop all payments going to Colombia and that the US may take very serious action against Colombia. That’s notable because Colombia also produces about 750k bpd. I’m assuming that this squeeze on Colombia as the US aims to nudge a regime change away from from Petro. The Presidential election is in May/June but there is a polling blackout now right now.
Also:
This article was written by Adam Button at investinglive.com.
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