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Will Hertz's (HTZ) 1st Earnings as Stand-Alone Firm Impress?
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Hertz Global Holdings Inc. (HTZ - Free Report) , one of the leading general-use car rental brands, is slated to report second-quarter 2016 earnings on Aug 8, before the opening bell. This will mark the company’s first quarterly results as a stand-alone car rental company.
In the last quarter, the company had delivered wider-than-expected loss per share. Let’s see how things are shaping up for this announcement.
Following the recent conclusion of the much-awaited separation of Hertz’s equipment rental business from its car rental business, the renewed Hertz Global Holdings Inc. will concentrate on its core car rental operations, which will help boost shareholder value.
With the separation plan concluded successfully, all strategic initiatives on track, a solid financial position, newly approved share buyback program and latest deals with Uber and Lyft, we believe that the company is well-positioned to exploit opportunities in the car rental space. Also, it stands strong in the industry and is well on track to achieve its EBITDA margin target of 16%−18% over the next three to five years.
This largest general use car rental company expects corporate EBITDA for the Hertz Global business in the range of $1.6–$1.7 billion for 2016. Also, Hertz expects earnings per share in the range of 95 cents to $1.10.
However, concerns regarding sluggish demand as well as lower pricing and excess industry capacity persist. Also, the prevailing currency headwinds continue to hamper the company’s international business. Consequently, we would prefer to wait and see what’s in store for Hertz in the quarter to be reported.
Earnings Whispers
Our proven model does not conclusively show that Hertz is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as you will see below.
Zacks ESP: Earnings ESP for Hertz is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate both are pegged at 47 cents.
Zacks Rank: Hertz carries a Zacks Rank #3 (Hold), which increases the predictive power of ESP. However, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into an earnings announcement, especially when the company is witnessing negative estimate revisions.
Stocks That Warrant a Look
Here are some companies you may want to consider as our model shows these have the right combination of elements to post an earnings beat this quarter:
Nordstrom Inc. (JWN - Free Report) , scheduled to report earnings on Aug 11, has an Earnings ESP of +1.82% and a Zacks Rank #2 (Buy).
Macy’s Inc. (M - Free Report) , scheduled to report earnings on Aug 11, has an Earnings ESP of +31.71% and a Zacks Rank #2.
Lowe’s Companies Inc. (LOW - Free Report) , scheduled to report earnings on Aug 17, has an Earnings ESP of +2.84% and a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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Will Hertz's (HTZ) 1st Earnings as Stand-Alone Firm Impress?
Hertz Global Holdings Inc. (HTZ - Free Report) , one of the leading general-use car rental brands, is slated to report second-quarter 2016 earnings on Aug 8, before the opening bell. This will mark the company’s first quarterly results as a stand-alone car rental company.
In the last quarter, the company had delivered wider-than-expected loss per share. Let’s see how things are shaping up for this announcement.
HERTZ GLBL HLDG Price and EPS Surprise
HERTZ GLBL HLDG Price and EPS Surprise | HERTZ GLBL HLDG Quote
Factors Influencing This Quarter
Following the recent conclusion of the much-awaited separation of Hertz’s equipment rental business from its car rental business, the renewed Hertz Global Holdings Inc. will concentrate on its core car rental operations, which will help boost shareholder value.
With the separation plan concluded successfully, all strategic initiatives on track, a solid financial position, newly approved share buyback program and latest deals with Uber and Lyft, we believe that the company is well-positioned to exploit opportunities in the car rental space. Also, it stands strong in the industry and is well on track to achieve its EBITDA margin target of 16%−18% over the next three to five years.
This largest general use car rental company expects corporate EBITDA for the Hertz Global business in the range of $1.6–$1.7 billion for 2016. Also, Hertz expects earnings per share in the range of 95 cents to $1.10.
However, concerns regarding sluggish demand as well as lower pricing and excess industry capacity persist. Also, the prevailing currency headwinds continue to hamper the company’s international business. Consequently, we would prefer to wait and see what’s in store for Hertz in the quarter to be reported.
Earnings Whispers
Our proven model does not conclusively show that Hertz is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as you will see below.
Zacks ESP: Earnings ESP for Hertz is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate both are pegged at 47 cents.
Zacks Rank: Hertz carries a Zacks Rank #3 (Hold), which increases the predictive power of ESP. However, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into an earnings announcement, especially when the company is witnessing negative estimate revisions.
Stocks That Warrant a Look
Here are some companies you may want to consider as our model shows these have the right combination of elements to post an earnings beat this quarter:
Nordstrom Inc. (JWN - Free Report) , scheduled to report earnings on Aug 11, has an Earnings ESP of +1.82% and a Zacks Rank #2 (Buy).
Macy’s Inc. (M - Free Report) , scheduled to report earnings on Aug 11, has an Earnings ESP of +31.71% and a Zacks Rank #2.
Lowe’s Companies Inc. (LOW - Free Report) , scheduled to report earnings on Aug 17, has an Earnings ESP of +2.84% and a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>