Hertz Global Holdings
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Hertz Global Holdings beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share shrank to a loss.
Margins dropped across the board.
Hertz Global Holdings reported revenue of $2.32 billion. The five analysts polled by S&P Capital IQ expected a top line of $2.30 billion on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $2.01 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.33. The eight earnings estimates compiled by S&P Capital IQ predicted $0.31 per share. Non-GAAP EPS of $0.33 for Q4 were 38% higher than the prior-year quarter's $0.24 per share. GAAP EPS were -$0.09 for Q4 compared to $0.11 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 22.8%, 30 basis points worse than the prior-year quarter. Operating margin was 12.4%, 130 basis points worse than the prior-year quarter. Net margin was -1.6%, 390 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.39 billion. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $10.88 billion. The average EPS estimate is $1.89.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 182 members out of 261 rating the stock outperform, and 79 members rating it underperform. Among 77 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 65 give Hertz Global Holdings a green thumbs-up, and 12 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hertz Global Holdings is outperform, with an average price target of $21.43.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Hertz Global Holdings. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.