Ashtead Share Discussion Threads

[clarky5150] 24/7/2015 14:36

URI not feelin the love from the septics again..

[bracke] 24/7/2015 13:51

If it's not you clarky it must be fenners.

[clarky5150] 24/7/2015 13:33

and that lucky sod is 20 points up already.

[bracke] 24/7/2015 12:55

It's clarky.

[binliners] 24/7/2015 12:28

Two buys of 100K shares this morning and one of 56K. All ordinary trades.

Someone's confident.

[bracke] 24/7/2015 12:05

clarky

Maybe. First task is to fill to-days gap.

5 day AHT/URI Comparison

[clarky5150] 24/7/2015 11:45

Hammer hanging man... reversal from here?

[bracke] 24/7/2015 11:20

Third opening gap in a row but to-days not so large.

If it gets to 900 I may even consider buying some myself.

[clarky5150] 24/7/2015 10:07

i think if URI pulls its socks up this afternoon we may well be at or very near the bottom.

[discodave4] 24/7/2015 09:57

Twice more likely to be right than wrong.....I'd take those odds!.DD

[clarky5150] 24/7/2015 09:46

93.876% of statistics are at least 34.67% inaccurate.

[glaws2] 24/7/2015 09:41

DiscoDave - how do you arrive at at a peg of 0.5; stockopedia is showing 3.32 and EPS marginally falling in 2016. No criticism implied - just intrigued in the difference in numbers.

[clarky5150] 24/7/2015 09:39

Hell Yeah.. This and URI.
Look at AHTs trading pattern over recent years. Big gains till April. Retrace through Summer. New highs by Christmas. If the non residential firms up as they are indicating in the states this will be a 250 point no brainer!

[discodave4] 24/7/2015 09:34

A FTSE100 company on a forward PE of 12, peg 0.5, with 3 year average eps growth rate of 50%........cheap as chips IMV.DD

[clarky5150] 24/7/2015 08:55

Heading toward our usual daily trades in the first hour. AHT is certainly in the spotlight at present.

[clarky5150] 24/7/2015 08:53

United Rentals.The buy back will start hoovering up these sells. Looks massively oversold to me from recent highs. URI and AHT were good long term earners but i think a few well timed buys will reap BIG reward in a fairly short period.

[fenners66] 24/7/2015 00:09

United Rentals Announces Second Quarter 2015 Results, Updates Full Year Outlook
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United Rentals (NYSE:URI)
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Today : Friday 24 July 2015
Click Here for more United Rentals Charts.

Announces New $1 Billion Share Repurchase Program

United Rentals, Inc. (NYSE:URI) today announced financial results for the second quarter 2015. Total revenue was $1.429 billion and rental revenue was $1.220 billion, compared with $1.399 billion and $1.179 billion, respectively, for the same period last year. On a GAAP basis, the company reported second quarter net income of $86 million, or $0.88 per diluted share, compared with $94 million, or $0.90 per diluted share, for the same period last year.1

Adjusted EPS2 for the quarter was $1.95 per diluted share, compared with $1.65 per diluted share for the same period last year. Adjusted EBITDA3 was $706 million and adjusted EBITDA margin was a second quarter company record at 49.4%, an increase of $43 million and 200 basis points, respectively, from the same period last year.

Second Quarter 2015 Highlights

Rental revenue (which includes owned equipment rental revenue, re-rent revenue and ancillary items) increased 3.5% year-over-year.4 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.
Return on invested capital was 8.9% for the 12 months ended June 30, 2015, an increase of 0.8 percentage points from the 12 months ended June 30, 2014.
Time utilization decreased 150 basis points year-over-year to 66.6%. Excluding the branches with the most exposure to upstream oil and gas, time utilization decreased 30 basis points year-over-year.
The company generated $124 million of proceeds from used equipment sales at an adjusted gross margin of 50.0%, compared with $138 million and 48.6% for the same period last year.5
Flow-through, which represents the year-over-year change in adjusted EBITDA divided by the year-over-year change in total revenue, was 143.3% for the quarter.

_______________

1. GAAP net income and diluted earnings per share for the second quarter 2015 and 2014 include debt extinguishment losses of $74 million, or $0.76 per diluted share, and $40 million, or $0.38 per diluted share, respectively.
2. Adjusted EPS is a non-GAAP measure that excludes the impact of the following special items: (i) merger related costs; (ii) restructuring charge; (iii) impact on interest expense related to fair value adjustment of acquired RSC indebtedness; (iv) impact on depreciation related to acquired RSC fleet and property and equipment; (v) impact of the fair value mark-up of acquired RSC fleet; (vi) merger related intangible asset amortization and (vii) loss on repurchase/redemption of debt securities and amendment of ABL facility. See table below for amounts.
3. Adjusted EBITDA is a non-GAAP measure that excludes the impact of the following special items: (i) merger related costs; (ii) restructuring charge; (iii) impact of the fair-value mark up of acquired RSC fleet and (iv) stock compensation expense, net. See table below for amounts.
4. The rental revenue increase includes an adverse impact from currency. Excluding this impact, rental revenue would have increased 4.8% year-over-year.
5. Used equipment sales adjusted gross margin excludes the impact of the fair value mark-up of acquired RSC fleet that was sold.


CEO Comments

Michael Kneeland, chief executive officer of United Rentals, said, "We solidly improved our profitability in the second quarter year-over-year, with record results for second quarter EBITDA margin and adjusted EPS. The adverse impacts from the drop in oil and gas activity as well as industry fleeting were greater than we anticipated and, as a result, we've updated our outlook on our 2015 targets."

Kneeland continued, "Demand for our equipment is clearly there, and our industry is expected to benefit from solid growth in the years ahead as oil drilling stabilizes and rental fleet is absorbed. Industry experts are projecting years of growth ahead, led by the ongoing rebound in non-residential construction. Given this outlook, and our ability to drive profitable growth and returns, we are accelerating our current $750 million share repurchase program and announcing an additional $1 billion repurchase program. These decisions underscore our commitment to return capital and deliver value to our stockholders."

Six Months 2015 Highlights

Total revenue was $2.744 billion and rental revenue was $2.345 billion, compared with $2.577 billion and $2.184 billion, respectively, for the same period last year.
Rental revenue increased 7.4% year-over-year.6 Within rental revenue, owned equipment rental revenue increased 7.5%, reflecting year-over-year increases of 5.3% in the volume of equipment on rent and 2.2% in rental rates. 7
Adjusted EBITDA was $1.308 billion and adjusted EBITDA margin was 47.7%, an increase of $126 million and 180 basis points, respectively, from the same period last year.
Time utilization decreased 100 basis points year-over-year to 65.4%. Excluding the branches with the most exposure to upstream oil and gas, time utilization decreased 10 basis points year-over-year.
The company generated $240 million of proceeds from used equipment sales at an adjusted gross margin of 50.4%, compared with $248 million and 48.8% for the same period last year.
Flow-through, which represents the year-over-year change in adjusted EBITDA divided by the year-over-year change in total revenue, was 75.4%.

2015 Outlook

The company has updated its full year outlook as follows:

Prior Outlook Current Outlook
Total revenue $6.0 billion to $6.1 billion $5.8 billion to $5.9 billion
Adjusted EBITDA $2.95 billion to $3.00 billion $2.80 billion to $2.85 billion
Increase in rental rates (year-over-year) Approximately 3.0% Approximately 0.5%
Time utilization Approximately 69.0% Approximately 67.5%
Net rental capital expenditures after gross purchases

Approximately $1.2 billion, after gross purchases of approximately $1.7 billion


Approximately $1.1 billion, after gross purchases of approximately $1.6 billion


Free cash flow (excluding the impact of merger and
restructuring related costs)
$725 million to $775 million Unchanged

[matt123d] 23/7/2015 20:40

URI ski slope.

[clarky5150] 23/7/2015 20:00

Make that nearly 14%

[clarky5150] 23/7/2015 19:53

URI nearly 13% down. Unless it picks up before close I think 900 may be the least of our worries :(

[discodave4] 23/7/2015 18:00

IMV (slightly biased!) BofA have it wrong, tend to support Berenberg's viewpoint:22nd June 2015IN THE KNOW: Ashtead Mispriced Due To Misconceptions, Says BerenbergLONDON (Alliance News) - Berenberg raises its price target and reiterates its Buy rating on Ashtead Group, saying that misconceptions surrounding the industrial equipment rental company have driven an unwarranted de-rating. Berenberg analyst Josh Puddle notes that while Ashtead's share price rose 20% over the past 12 months, it has de-rated by 26% relative to the wider European market and, on a one-year forward price-earnings basis, shares are the cheapest they have been since November 2013. "This is particularly surprising because: 1) the company is accelerating its US share gains; and 2) the non-residential construction cycle in the US, to which Sunbelt (Ashtead's US business) is nearly 50% exposed, is starting to recover," Puddle says. The analyst says the main misconception regarding the rental equipment industry in the US is that the market is oversupplied, with some investors pointing to industry fleet investment approaching its previous peak in 2006. However, Puddle says this research ignores two important factors; the rental penetration in the US has increased significantly since 2006 and inflation. "Regarding rental penetration in the US, we estimate that it has increased from 42% in 2006 to 53% in 2014. All else being equal, this implies industry growth on average at 3.0% per year," the analyst says. "Regarding US inflation, we note it has been at an average annual rate of 2.0% from 2006-14." Another misconception, the analyst says, is the concern that the industry will redeploy oil and gas fleet to other end markets, which will put significant pressure on rates. The analyst believes that strong demand in other end-markets will be enough to absorb any spare capacity. For Ashtead specifically, there are concerns that margins at Sunbelt have peaked, but the analyst disagrees. "We are confident Sunbelt can continue to expand its margins, due largely to the importance of scale in a rental business, but also from the increasing contribution from higher-margin equipment. We estimate a group [earnings before interest, taxes, and amortisation] margin in FY 2017 of 30.4% versus 27.3% in FY 2015, which we forecast will drive a record [return on invested capital] in FY 2017 of 13.6%," Puddle says. Berenberg raises its price target to 1,350.00 pence from 1,300.00p. Ashtead is one of the best performers in the FTSE 100 at the open Monday, trading up 1.6% at 1,137.00p. By Neil Thakrar; [e-mail]; @NeilThakrar1 Copyright 2015 Alliance News Limited. All Rights Reserved.

[bracke] 23/7/2015 14:11

clarky

All is not yet lost. 900 remains a possibility for the present.

[2flatpack] 23/7/2015 14:00

clarky
I've had enough buying opportunities for the time being.
cheers

[clarky5150] 23/7/2015 13:43

Damn. I was hoping your 900 was on the cards Bracke. A buy in opportunity I could never have expected 3 months ago..
These will be £12+ by Christmas.

[bracke] 23/7/2015 13:38

Good day 2flat

It's starting to appear that AHT is going to prove me wrong (not for the first time!) and fill to-days opening gap. If it goes straight on to fill yesterdays opening gap I will be truly impressed.