Shares of Hertz Global Holdings Inc. (OTC:HTZG.Q), an automotive vehicle rental service with brands such as Dollar, Thrifty, and Firefly, in addition to its namesake Hertz, are up 27% as of 11:11 a.m. EDT Tuesday, a day after management announced second-quarter data. Hertz's strong second quarter was enough to boost shares of Avis Budget Group (NASDAQ:CAR) 7% higher ahead of its August 7, 2018, earnings release after market close.
Total revenue jumped 7% during the second quarter, compared to the prior year, and net loss improved by 60%. Total revenues of $2.4 billion topped analysts' estimates calling for $2.3 billion, and the company's adjusted $0.19 loss per share was narrower than analysts' expected adjusted losses of $0.24 per share. It was also the highest second-quarter U.S. RAC segment revenues since 2014, and management noted an improvement in U.S. RAC per unit fleet costs.
Kathryn V. Marinello, president and chief executive officer of Hertz, said the following in a press release:
In the second quarter, we generated growth across every business segment with higher year-over-year revenue and Adjusted Corporate EBITDA. In the U.S., our turnaround initiatives are bearing fruit as a result of effective strategies, experienced leaders, and critical investments in fleet, marketing and our retail operations.
Management's focus will also continue to be developing long-term business partnerships such as the recent partnership with Aptiv PLC (NYSE: APTV) that will launch during the fall and calls for Hertz to help maintain and operate Aptiv's driverless vehicle fleet in Las Vegas. It will be critical for Hertz to leverage its large store footprint and knowledge of maintaining its massive rental fleet of more than 1 million vehicles, through partnerships similar to Aptiv, to deliver a long-term growth story to investors.