Shares of United Rentals (URI +4.2%) jumped into the close after the company's Q3 results beat on EPS but were just shy on revenue.
Rental revenue grew 8.3% Y/Y to $1.14B, reflecting an increase in both volume and rates.
EBITDA came in at $642M, representing a record margin of 49%.
The board authorized a $500M share repurchase program which it intends to complete within the next 18 months. Upon completion shares outstanding would be reduced by ~9%.
Rental fleet size expanded to $7.96B compared to $7.23B at the end of last year, with average age falling to 44 months from 47.2 months.
The company reaffirmed its fully-year outlook for rental rates to rise at least 4%, EBITDA of $2.25B-$2.35B, FCF of $400M-$500M, and utilization of ~68%. United Rentals also realized $64M in cost synergies from its integration of RSC and reaffirmed its full-year goal of $230M-$250M.
CEO Michael Kneeland: "we expect that nonresidential construction will continue to trend upward in 2014 ... [O]ur operations are in a strong position to drive margin expansion through further rate improvement and business process efficiencies."