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Hertz Global (HTZ) Q2 Earnings and Revenues Beat Estimates

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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 (FLY - Free Report) 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.

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