United Rentals misses third-quarter profit estimates on lower margins
Oct 22 (Reuters) -United Rentals URI.N missed third-quarter profit estimates on Wednesday, on lower margins across all of the equipment rental company's segments.
Shares of the company fell nearly 3% after the bell.
The slow recovery of non-residential construction and persisting supply chain issues continue to weigh on costs for equipment dealers and are hurting margins.
The Stamford,Connecticut-based company posted quarterly profit of $11.80 per share, compared with analysts' average of $12.48 per share, according to data compiled by LSEG.
Its specialty rentals segment, however, continued to see robust demand during the quarter, driving a nearly 24% rise in revenue to $1.14 billion.
Total revenue for the quarter ended September 30, rose 7.4% to $3.46 billion, compared with estimates of $4.01 billion.
United Rentals narrowed its full-year revenue forecast to range between $15.1 billion and $15.3 billion, compared with the earlier estimated range of $15.05 billion to $15.35 billion, while maintaining a mid-point of $15.2 billion, which comes in line LSEG estimates.
Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Mohammed Safi Shamsi
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