Hertz Global Holdings Inc. (NASDSAQ: HTZ) shares are trading lower Thursday after the company reported mixed third-quarter financial results.
- Hertz stock is feeling bearish pressure. What’s pressuring HTZ stock?
Hertz Misses on EPS but Posts Best Revenue in Three Years
Hertz reported third-quarter adjusted earnings per share of 14 cents, missing the consensus estimate of 25 cents. It reported revenue of $2.617 billion, up about 6% from a year earlier and its best quarterly revenue in three years, just ahead of the consensus estimate of $2.614 billion. GAAP net income was $116 million, down from $184 million a year earlier, and GAAP diluted earnings per share was 20 cents. Adjusted net income was $67 million, and adjusted corporate EBITDA was $233 million, up 15% from a year earlier and its best in three years.
“We delivered our strongest quarterly revenue and Adjusted Corporate EBITDA performance in three years, driven by continued revenue growth and margin expansion on flat capacity,” said Gil West, Hertz’s CEO.
Revenue per Day Rises About 5%, with U.S. Core Rental Up 8%
Revenue per unit and revenue per day each rose about 5% from a year earlier, the third straight quarter of sequential improvement. In the U.S. core business, revenue per day rose about 8%, despite lower volume from the Transportation Security Administration, while International was softer. Net depreciation per unit per month was $285, in line with Hertz’s expectations, and the average age of its U.S. core fleet is nine months, the youngest in 12 years.
Direct operating expense per day rose 6% from a year earlier and adjusted direct operating expense per day rose about 5%, mainly on higher collision and maintenance costs. The spread between revenue per day and adjusted direct operating expense per day improved about 5%, the fourth straight quarter of improvement. Hertz ended the quarter with about $946 million of liquidity.
Hertz’s Oro Mobility Secures $80M Investment, Debuts AV Partnership
Hertz recently announced that its Oro Mobility unit secured an $80 million strategic equity investment from a consortium of investors, giving it the capital to scale as a standalone platform. Oro drivers have completed more than ten million miles to date, and its first autonomous vehicle partnership is underway in the San Francisco Bay Area.
Hertz Shares Crash
HTZ Price Action: At the time of publication, Hertz shares are trading 6.64% lower at $2.10, according to data from Benzinga Pro.
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