Shares of Hertz Global Holdings (NASDAQ:HTZ) rose 5.12% on Thursday following the company's release of first-quarter financial results that exceeded Wall Street revenue estimates.
For the quarter, Hertz reported $2.0 billion in revenue, topping the consensus expectation of $1.88 billion. The company reported a loss per share of $0.72, narrowly wider than the analyst forecast of a $0.71 loss.
Hertz kept its full-year guidance unchanged but altered the assumptions underlying that outlook. Management now anticipates that higher pricing will be offset by fewer rental days than previously projected. The company also signaled an expectation that depreciation per unit will be below $300.
Management pointed to mid-single-digit percentage pricing increases as a primary driver of the revenue beat. Those pricing gains helped lift top-line results despite pressure from greater depreciation per unit than earlier guided.
"HTZ reported strong results, as rev and EBITDA both ran ahead of cons estimates, driven by MSD% pricing offset by higher DPU than guided," Jefferies analysts commented. "The guide for the year was maintained but now expects higher pricing offset by lower days than originally assumed. Further, guide anticipates DPU below $300. We remain on the sidelines, given the liquidity position remains tenuous, but believe mgmt is managing what’s in their control well."
The company's ability to extract stronger pricing helped overcome headwinds in other parts of the business, allowing Hertz to post revenue that outpaced estimates even as some expense items and utilization metrics weighed on profitability.
Below are the main takeaways from Hertz's quarter and management commentary.
- Revenue outperformance: Reported revenue of $2.0 billion exceeded the $1.88 billion consensus.
- Profitability: Loss per share came in at $0.72 versus the $0.71 estimate.
- Guidance and assumptions: Full-year guidance was maintained, but the forecast now reflects higher pricing offset by lower rental days and anticipates depreciation per unit under $300.
These results present a mixed picture: stronger pricing and revenue growth on one hand, and persistent losses and elevated depreciation pressure on the other. Analysts highlighted operational management while noting continued concerns about liquidity.