Shares in Ashtead Group PLC (LSE:AHT) rose after the equipment hire group increased its guidance despite growth slowing in the third quarter.
The FTSE 100-listed group reported revenue of US$7.2bn for the nine months to the end of January 2023, up 25% year-on-year after growth slowed to 23% in the past quarter.
Profit before tax for the nine months was up 33% to US$505mln, with growth in the third quarter slowing to 29%.
Over the nine months, it added 120 locations in North America, thanks to spending US$2.6bn on existing locations and greenfield sites and US$970mln on 38 bolt-on acquisitions.
Chief executive Brendan Horgan said guidance had been lifted for capital expenditure this year and next, with guidance for US rental revenue hiked to 23-25% from the previous 20-23%, while the UK is now seen growing between 0% and 3%, compared to flat expectations before.
The shares rose 2.7% to 5,902p.
Broker Peel Hunt said US momentum was "impressive", with third-quarter rental revenue 23% as rate improvement offset cost inflation, with new gross capex plans for 2024 of US$4bn to US$4.4bn supporting extra growth.
"We increase our April 2023E PBT from $2,200m (cons $2,228m) to $2,250m, to give EPS of USc378 (from USc369). "