Hertz Q2 revenue rises 10%, beats analyst estimates
HTZ•Outlook
- Company expects full-year RPU to trend above its North Star target of $1,500
- Hertz expects to achieve Net DPU target at or below $300 for the full year
- Company expects its younger fleet to produce better economics going forward
Result drivers
- Strong pricing - Record Revenue per Day and improved pricing drove revenue growth, per CEO Gil West
- Operational efficiency - Improved utilization and disciplined supply management contributed to results
- Younger fleet - 94% of U.S. core fleet comprised of newer vehicles, expected to produce better economics
Key details and analyst coverage
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Beat | $2.40 bln | $2.28 bln (7 Analysts) |
| Q2 Adjusted Loss Per Share | Beat | $0.11 | $0.24 (7 Analysts) |
| Q2 EPS | $0.05 | ||
| Q2 Adjusted Net Loss | Beat | $47 mln | $99.40 mln (2 Analysts) |
| Q2 Net Income | $64 mln | ||
| Q2 Adjusted EBITDA Margin | 3.00% |
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 6 "hold" and 3 "sell" or "strong sell". The average consensus recommendation for the passenger transportation, ground & sea peer group is "buy." Wall Street's median 12-month price target for Hertz Global Holdings Inc is $2.33, about 49% above its August 5 closing price of $1.56.
