Hertz Global Holdings
The 10-second takeaway
For the quarter ended June 30 (Q2), Hertz Global Holdings met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share expanded significantly. GAAP earnings per share increased significantly.
Gross margins increased, operating margins dropped, net margins expanded.
Hertz Global Holdings logged revenue of $2.71 billion. The four analysts polled by S&P Capital IQ hoped for revenue of $2.72 billion on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $2.23 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 $0.45. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.45 per share. Non-GAAP EPS of $0.45 for Q2 were 29% higher than the prior-year quarter's $0.35 per share. GAAP EPS of $0.27 for Q2 were 29% higher than the prior-year quarter's $0.21 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 48.2%, much better than the prior-year quarter. Operating margin was 14.5%, 20 basis points worse than the prior-year quarter. Net margin was 4.5%, 30 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.12 billion. On the bottom line, the average EPS estimate is $0.78.
Next year's average estimate for revenue is $10.90 billion. The average EPS estimate is $1.90.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 207 members out of 285 rating the stock outperform, and 78 members rating it underperform. Among 83 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 73 give Hertz Global Holdings a green thumbs-up, and 10 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 $28.44.
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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.