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Hertz surpasses 3Q earnings and revenue as shares race higher

The car-rental company says the turnaround is reflected in the fourth straight quarter of growth
A Hertz branch.
Hertz is one of the world's top vehicle rental companies.

Hertz Global Holdings Inc (NYSE:HTZ) roundly beat third-quarter earnings and revenues on stronger vehicle rentals in the US and around the world, prompting shares to careen higher in Friday's premarket.

The company said EPS clocked in at $2.14, against the year-ago level of $1.42 and the consensus expectation that it would come in at $1.78. Revenue came in at $2.76 billion, up 7% from the year-ago level and expectations it would hit $2.14 billion.

"Our operational turnaround continues to move forward as reflected by our fourth consecutive quarter of year-over-year revenue and adjusted earnings growth," said Kathryn Marinello, President and Chief Executive Officer of Hertz Global

Shares of the company synonymous with car rentals soared 16.64% at $19 in the premarket, having eased 1.39% to close on Thursday at $16.29.

READ: Hertz Global reports mixed second-quarter results, but shares rise double digits on improvement

"We are balancing our priorities of targeting a higher-quality revenue mix, while making investments in our operations, brands and technologies to optimally position the company for long-term, sustainable growth," said Marinello.

Revenues from US operations reached $1.85 billion, up 10% versus the prior-year quarter because of volume and pricing both on and off the airport, the company said. 

International revenues reached $732 million. Volume was flat versus the prior-year quarter and increased 2% excluding Brazil.

The results excluding Brazil were driven by solid growth in the Asia/Pacific region, along with moderate leisure growth in Europe.

The Hertz Corporation, a subsidiary of Hertz Global Holdings Inc, operates the Hertz, Dollar and Thrifty vehicle rental brands in approximately 10,200 corporate and franchisee locations throughout North America, Europe, the Caribbean, Latin America, Africa, the Middle East, Asia, Australia and New Zealand. 

The company is based in Estero, Florida.

Reporting by Rene Pastor, contactable on [email protected]

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Newswire
November 08 2016

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