By: Rob Wertheimer 

URI shares fell about 13% around 1Q earnings, and haven’t recovered much since. That reaction increasingly seems like a selloff on short term volatility, weather, and noise in the data. Pricing was strong in the quarter, up 2.9% year over year. Pricing has long been the investor focus, and with the upcycle here it is coming through. Utilization on equipment fell 20 bps year over year, proforma for acquisitions Adjusted EBITDA incremental margin of ~50% was, relatedly, a little light versus a targeted range closer to 60%. Effectively, therefore, utilization was a perceived weak spot that sent the shares down more than 10%.

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