Hertz Q3 Revenue Rises 6% to $2.6B as Adjusted EPS Trails Forecasts

Car rental company Hertz Global Holdings posted third-quarter revenue of $2.6 billion on Thursday, up about 6% from a year earlier, while adjusted earnings of 14 cents a share came in below Wall Street forecasts, according to results the Estero, Florida-based company filed with the Securities and Exchange Commission.

• Revenue: $2.6 billion, up about 6% year over year
• GAAP net income / diluted EPS: $116 million / $0.20, vs. $184 million in net income a year earlier
• Adjusted net income / adjusted diluted EPS: $67 million / $0.14
• Adjusted Corporate EBITDA: $233 million, up 15%
• Revenue per unit: $1,639, up about 5%; revenue per day also up about 5%
• Liquidity at quarter end: about $946 million

Investing.com reported that the adjusted figure missed the analyst consensus of 25 cents a share and that revenue fell short of a $2.63 billion estimate. Hertz shares dropped about 7% after the release, the outlet said.

Pricing gains and repair costs

Hertz said revenue per day in its U.S. core rental business rose about 8%, despite lower airport passenger volumes, while its international segment was softer. Direct operating expense per day climbed 6%. The company attributed about 240 basis points of that increase to costs tied to higher rental rates and said the rest mainly reflected higher collision and maintenance expense. Chief Executive Gil West called it the company’s strongest quarter for revenue and Adjusted Corporate EBITDA in three years.

Fleet and the Oro Mobility stake

Net depreciation per vehicle was $285 a month, in line with company expectations, and the average age of the U.S. core fleet was nine months, the youngest in 12 years, Hertz said. The company also said its Oro Mobility unit secured an $80 million equity investment from outside investors; Hertz keeps majority economic ownership. Hertz, which runs the Hertz, Dollar, Thrifty and Firefly brands, held its earnings call at 9 a.m. Eastern on Thursday.

Sources: Hertz Exhibit 99.1 (SEC), Hertz Form 8-K (SEC), Investing.com