United Rentals rises on strong 2012 outlook
GREENWICH, Conn. (AP) — Heavy equipment rental company United Rentals issued a strong 2012 outlook Monday, and the company's shares rose in midday trading.
United Rentals said it expects $1.95 billion to $2 billion in adjusted earnings before interest, taxes, depreciation and amortization costs, or EBITDA. It said revenue will grow to a range of $4.6 billion to $4.7 billion. It said it still expects rental rates will grow about 6.5 percent.
The forecasts reflect United Rental's acquisition of RSC Holdings. It bought RSC in April for $4.2 billion in cash and stock.
Analysts had expected United Rentals to report EBITDA of $1.77 billion and $4.31 billion in revenue, according to FactSet.
The company had $1.49 billion in adjusted EBITDA and $4.13 billion in revenue in 2011.
Shares of United Rentals picked up $1.02, or 3.4 percent, to $31.41 at midday.