Back to top

Image: Bigstock

Hertz Global (HTZ) Q2 Earnings and Revenues Beat Estimates

Read MoreHide Full Article

Hertz Global Holdings, Inc.’s (HTZ - Free Report) second-quarter loss (excluding 56 cents from non-recurring items) of 19 cents compared favorably with the Zacks Consensus Estimate of a loss of 29 cents and the year-ago loss of 63 cents. Results were aided by higher revenues.

Quarterly revenues of $2,389 million beat the Zacks Consensus Estimate of $2,315.2 million and improved 7.4% on a year-over-year basis. Strength across majority of the segments drove the top line.

Segmental Performance

The U.S. Rental Car segment generated revenues of $1,628 million, up 7% year over year. The improvement can be attributed to increased volumes both on and off airport.

Vehicle utilization improved 100 basis points to 81% in the quarter on the back of efficient fleet management. Excluding fleet dedicated to transportation network companies ("TNC") rentals, vehicle capacity increased 3% in the reported quarter.

In second-quarter 2018, direct vehicle operating and selling, general and administrative costs (as a % of total segmental revenues) increased to 70% from 67% a year ago. Higher rental volume and investments pertaining to the company’s transformation initiatives drove expenses.

The International Rental Car segment generated revenues of $589 million, up 8% year over year (2% excluding foreign currency impact). Total revenue per transaction day (RPD) increased 2%.

During the reported quarter, direct vehicle operating and selling, general and administrative costs (as a % of total segmental revenues) decreased to 65% from 69% a year ago. Revenues from all other operations increased 6% to $172 million.

Hertz Global Holdings, Inc Price, Consensus and EPS Surprise

 

Hertz Global Holdings, Inc Price, Consensus and EPS Surprise | Hertz Global Holdings, Inc Quote

Balance Sheet and Cash Flow

Hertz Global exited second-quarter 2018 with cash and cash equivalents of $685 million compared with $1,046 million at the end of the first quarter of 2018. Restricted cash at the end of the quarter under review was $236 million compared with $894 million at the end of the preceding quarter.

As of Jun 30, 2018, total debt was $17,364 million compared with $16,811 million as of Mar 31, 2018. The company generated $942 million of cash from operating activities during the first half of the year compared with $963 million in the year-ago comparable period.

Zacks Rank & Upcoming Releases

Hertz Global currently has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stock here.

Investors interested in the broader Transportation Sector are awaiting second-quarter 2018 earnings reports from key players, namely, Copa Holdings, S.A. (CPA - Free Report) , Fly Leasing Limited and Frontline Ltd. (FRO - Free Report) . While Copa Holdings will release results on Aug 8, Fly Leasing Limited and Frontline Ltd. will announce the same on Aug 23 and 31, respectively.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Hertz Global Holdings, Inc. (HTZ) - free report >>

Frontline PLC (FRO) - free report >>

Copa Holdings, S.A. (CPA) - free report >>

Published in