Hertz Global Holdings Inc. (NYSE: HTZ)
Shares of Hertz Global Holdings Inc. dropped 14% to trade at $18.85 on Tuesday after the company reported Q1 earnings that missed the Wall Street’s estimate. The car rental reported a loss that missed analyst expectations by $0.28. However, revenue beat the finished above analyst estimates by $90 million.
The company reported better results compared to the year-ago period as revenue had increased by 8% while loss had decreased by 9%. The management of the company cited some progress in the first quarter but investors were not pleased with the slow rate of the turnaround.
HTZ Earnings & Outlook
During the quarter, Hertz Global holdings reported adjusted earnings per share of $-1.58 compared to adjusted earnings per share of $-1.61 in the year-ago period. Revenue increased by 8% to $2.06 billion from $1.92 billion for the same period last year.
The consensus analyst estimate for the quarter was $-1.26 earnings per share and revenue of $1.97 billion. The current consensus estimate for the second quarter is $-0.15 earnings per share and $-0.7 earnings per share for the full year.
This stock usually has decent intraday moves so we can expect some opportunities for day trading.
Hertz Global Holdings CEO Comments
“We entered 2018 a stronger company than one-year ago with positive underlying revenue momentum as our strategies to enhance fleet, customer service and brand value are gaining traction. In each of the last three quarters, worldwide revenue has increased year-over-year. In the U.S. in the fourth quarter, we reversed the declining trend and continued that progress into the recent first quarter where we increased revenue by 5% versus a year ago,” said Hertz Chief Executive Kathryn V. Marinello.
“At the same time, we have fortified our leadership team and are managing our assets more effectively. The early progress is motivating for our employees and being recognized by our customers. But we still have work to do, reflecting the significant opportunities in front of us, as we position our business for sustainable, long-term growth,” Marinello added.
Hertz Global Holdings Inc. Company Profile
Hertz Global Holdings, Inc. is a car rental company based in Florida. It offers car rental services globally through its portfolio of car rental brands; Hertz, Dollar and Thrifty.
The Company rents cars of various models including Toyota, General motors, Nissan and other manufacturers. Besides offering car rental services, the company also offers fleet leasing and management services through its Donlen subsidiary.
Hertz Global Holdings has three segments of operations namely; All other Operations, U.S. Car Rental (U.S. RAC), and International Car Rental (International RAC). All Other Operations segment offers vehicle rental and fleet management services, as well as other business activities through its Donlen subsidiary.
The U.S. RAC segment engages in vehicle leasing and sale of ancillary services and products in the U.S. The International RAC segment engages in vehicle rental services and sale of ancillary services and products internationally. The company was incorporated in 2015 and faces competition from Uber International C.V., Ean Holdings LLC and Avis Budget Group Inc. –Reuters