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What's in the Offing for Hertz Global (HTZ) in Q1 Earnings?
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Hertz Global Holdings (HTZ - Free Report) is scheduled to release first-quarter 2022 earnings results on Apr 27, after market close.
The Zacks Consensus Estimate for Hertz Global’s first-quarter earnings has skyrocketed 193.1% over the past 60 days to 85 cents. The consensus mark for the March-end quarter’s revenues is currently pegged at $1.77 billion. Notably, the company emerged from a pandemic-induced year-long bankruptcy last year.
Against this backdrop, let’s discuss the factors that are expected to have impacted Hertz Global’s performance in the March-end quarter.
With the gradual resumption of economic activities, the Americas Rental Car segment (which includes operations from Canada, Latin America, the United States and the Caribbean) is likely to have performed well in the to-be-reported quarter.
Favorable pricing for rental cars and an upbeat demand for used vehicles are expected to have aided the first-quarter segmental performance. This is likely to have boosted the top line, as the Americas Rental Car unit accounts for most of HTZ’s top line.
However, the performance of the international Rental Car segment is likely to have suffered in the first quarter mainly due to omicron-induced woes, which are anticipated to have hurt rental car demand. High total costs are likely to have hurt the bottom line in the to-be-reported quarter.
Costs have likely bumped up due to escalated direct vehicle and operating expenses in the Americas Rental Car unit. The significant increase in the oil price (up 33% in the January-March period mainly due to supply concerns following the ongoing Russia-Ukraine war) is likely to have pushed up total costs, hurting the bottom line.
What Does the Zacks Model Say?
Our proven model does not predict an earnings beat for Hertz Global this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here as elaborated below. You can seethe complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Hertz Global has an Earnings ESP of 0.00% as the Most Accurate Estimate is in line with the Zacks Consensus Estimate of 85 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Hertz Global currently sports a Zacks Rank #1.
Highlights of Q4 Earnings
Hertz Global's fourth-quarter earnings (excluding $2.43 from non-recurring items) of 91 cents per share surpassed the Zacks Consensus Estimate of 73 cents. However, total revenues of $1,949 million missed the Zacks Consensus Estimate of $1,975.6 million.
Stocks to Consider
Investors interested in the broader Transportation sector may consider stocks like United Parcel Service (UPS - Free Report) , Southwest Airlines (LUV - Free Report) and American Airlines (AAL - Free Report) , as these stocks possess the right combination of elements to beat estimates this reporting cycle.
UPS has an Earnings ESP of +1.92% and is a Zacks #3 Ranked stock at present. UPS will release first-quarter 2022 results on Apr 26.
Strong package delivery demand is expected to have aided UPS’ first-quarter 2022 performance. Higher revenue per piece is likely to get reflected in U.S. Domestic Package’s revenues.
Southwest Airlines has an Earnings ESP of +28.09% and is currently a #3 Ranked player. LUV will release first-quarter 2022 results on Apr 28.
Southwest Airlines’ first-quarter performance is expected to have been aided by robust passenger revenues, owing to upbeat air-travel demand. Notably, owing to LUV’s multi-year fuel hedging program, it is insured against spikes in jet fuel prices.
American Airlines has an Earnings ESP of +3.01% and is a Zacks #3 Ranked stock at present. AAL will release first-quarter 2022 results on Apr 21.
With air-travel demand steadily rebounding, AAL’s passenger revenues are expected to reflect a significant year-over-year increase. The anticipated increase in passenger revenues is likely to have driven the company’s top line in the first quarter.
Image: Bigstock
What's in the Offing for Hertz Global (HTZ) in Q1 Earnings?
Hertz Global Holdings (HTZ - Free Report) is scheduled to release first-quarter 2022 earnings results on Apr 27, after market close.
The Zacks Consensus Estimate for Hertz Global’s first-quarter earnings has skyrocketed 193.1% over the past 60 days to 85 cents. The consensus mark for the March-end quarter’s revenues is currently pegged at $1.77 billion. Notably, the company emerged from a pandemic-induced year-long bankruptcy last year.
Against this backdrop, let’s discuss the factors that are expected to have impacted Hertz Global’s performance in the March-end quarter.
With the gradual resumption of economic activities, the Americas Rental Car segment (which includes operations from Canada, Latin America, the United States and the Caribbean) is likely to have performed well in the to-be-reported quarter.
Favorable pricing for rental cars and an upbeat demand for used vehicles are expected to have aided the first-quarter segmental performance. This is likely to have boosted the top line, as the Americas Rental Car unit accounts for most of HTZ’s top line.
However, the performance of the international Rental Car segment is likely to have suffered in the first quarter mainly due to omicron-induced woes, which are anticipated to have hurt rental car demand. High total costs are likely to have hurt the bottom line in the to-be-reported quarter.
Costs have likely bumped up due to escalated direct vehicle and operating expenses in the Americas Rental Car unit. The significant increase in the oil price (up 33% in the January-March period mainly due to supply concerns following the ongoing Russia-Ukraine war) is likely to have pushed up total costs, hurting the bottom line.
What Does the Zacks Model Say?
Our proven model does not predict an earnings beat for Hertz Global this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here as elaborated below. You can seethe complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Hertz Global has an Earnings ESP of 0.00% as the Most Accurate Estimate is in line with the Zacks Consensus Estimate of 85 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Hertz Global currently sports a Zacks Rank #1.
Highlights of Q4 Earnings
Hertz Global's fourth-quarter earnings (excluding $2.43 from non-recurring items) of 91 cents per share surpassed the Zacks Consensus Estimate of 73 cents. However, total revenues of $1,949 million missed the Zacks Consensus Estimate of $1,975.6 million.
Stocks to Consider
Investors interested in the broader Transportation sector may consider stocks like United Parcel Service (UPS - Free Report) , Southwest Airlines (LUV - Free Report) and American Airlines (AAL - Free Report) , as these stocks possess the right combination of elements to beat estimates this reporting cycle.
UPS has an Earnings ESP of +1.92% and is a Zacks #3 Ranked stock at present. UPS will release first-quarter 2022 results on Apr 26.
Strong package delivery demand is expected to have aided UPS’ first-quarter 2022 performance. Higher revenue per piece is likely to get reflected in U.S. Domestic Package’s revenues.
Southwest Airlines has an Earnings ESP of +28.09% and is currently a #3 Ranked player. LUV will release first-quarter 2022 results on Apr 28.
Southwest Airlines’ first-quarter performance is expected to have been aided by robust passenger revenues, owing to upbeat air-travel demand. Notably, owing to LUV’s multi-year fuel hedging program, it is insured against spikes in jet fuel prices.
American Airlines has an Earnings ESP of +3.01% and is a Zacks #3 Ranked stock at present. AAL will release first-quarter 2022 results on Apr 21.
With air-travel demand steadily rebounding, AAL’s passenger revenues are expected to reflect a significant year-over-year increase. The anticipated increase in passenger revenues is likely to have driven the company’s top line in the first quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.