Midday Commentary: United Rentals bonds, shares move up following earnings news

By Paul Deckelman

New York, Oct. 17 - United Rentals (North America) Inc.'s bonds were firmer on Wednesday morning after the Greenwich, Conn.-based equipment rental company's improved quarterly results.

United Rentals' 8 3/8% notes due 2020 pushed up to 110 bid, up ¾ point, on round-lot volume of more than $3 million.

The company's 9¼% notes due 2019 were trading at 114 bid, up a point from recent levels on round-lot trading of over $2 million.

The company's 10 7/8% notes due 2016 were trading around 110½ bid, down a quarter point, but on small volume.

The company's Nasdaq-traded shares jumped by $3.72, or 10.95%, to $37.68 at 10:45 a.m. ET., on about-normal volume of 3.3 million shares.

The company said that third-quarter earnings rose 12.3% on increased demand for its industrial and commercial rental equipment.

United Rentals posted net income of $73 million, or 70 cents per share, versus $65 million, or 91 cents per share, in the year-ago third quarter; per-share earnings fell because of a sizable increase in the number of outstanding shares.

For the overall market, the KDP High Yield Daily index stood at 74.59, up 6 basis points over Tuesday's close, while its yield came in by 1 bp to an even 6%.

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