Global car rental company Hertz (NASDAQ: HTZ) will be announcing earnings results this Thursday before market hours. Here’s what you need to know.
Hertz beat analysts’ revenue expectations last quarter, reporting revenues of $2.00 billion, up 10.5% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ EBITDA estimates.
Is Hertz a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Hertz’s revenue to grow 4.5% year on year, a reversal from the 7.1% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Hertz has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Hertz’s peers in the ground transportation segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Schneider delivered year-on-year revenue growth of 10.4%, beating analysts’ expectations by 3.9%, and XPO reported revenues up 13.2%, topping estimates by 2.8%. Schneider traded up 4.7% following the results while XPO’s stock price was unchanged.
Read our full analysis of Schneider’s results here and XPO’s results here.
Investors in the ground transportation segment have had steady hands going into earnings, with share prices flat over the last month. Hertz is down 26% during the same time and is heading into earnings with an average analyst price target of $2.78 (compared to the current share price of $1.52).
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