URI again

My last trade on URI I was stopped out for a loss of 2.25. I just bought again at 67 flat  There is support at 66.45 and the 200 SMA (simple moving average at 66.31.

22-Jul-15 16:13 ET
United Rentals beats by $0.11, misses on revs; co lowers FY15 revs guidance; announces new $1 bln share repurchase program   (77.60 -1.17)
Reports Q2 (Jun) earnings of $1.95 per share, excluding non-recurring items, $0.11 better than the Capital IQ Consensus Estimate of $1.84; revenues rose 2.1% year/year to $1.43 bln vs the $1.45 bln consensus. Rental revenue (which includes owned equipment rental revenue, re-rent revenue and ancillary items) increased 3.5% year-over-year. Within rental revenue, owned equipment rental revenue increased 3.7%, reflecting year-over-year increases of 2.8% in the volume of equipment on rent and 1.5% in rental rates.

  • Co lowers guidance for FY15, sees FY15 revs of $5.8-5.9 bln vs. $6 bln Capital IQ Consensus Estimate, down from $6.0-6.1 bln
  • Courtesy of Briefing.com                                                                                                                                                                                                                                                                                    As you can see they beat their EPS by 11 cents but had a small miss on revenue. The problem seems to be the lower FY15 revenue guidance of 5.8 to 5.9 billion versus consensus of 6.0 to 6.1 billion.

Their trailing EPS of 7.39 gives URI a P/E of 9.06 and a target of 112.35.

Up to this point my trades on URI have been half normal size or less and kept on a tight leash. Now I’m in with several thousand shares. It’s possible URI could go lower but if does I will still be in and looking for a turn pattern.

Down a quarter as I write this,

Good luck

Downside guidance is never a good thing but this is very minor (3 percent)

Read more: http://www.briefing.com/InPlayEq/Search/Ticker.htm?ticker=uri#ixzz3gkH5WTVl


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