Car rental firm Hertz Q3 revenue slightly beats estimates on strong US pricing

Overview

• U.S. car rental firm's Q3 revenue rose 6%, slightly beating analyst expectations

• Results driven by strong U.S. pricing and margin expansion, offset by international softness

Outlook

• Company sees opportunity to expand franchise model and build new earnings sources

• Hertz plans to expand franchise operations in additional geographies

• Company expects growth from new service offerings such as third-party vehicle transportation

Result Drivers

• U.S. PRICING - Co said strong pricing in U.S. core business drove revenue growth, offset by international softness

• MARGIN EXPANSION - Co said improved spread between revenue per day and operating expense per day supported margin expansion

• COST PRESSURES - Co said higher collision and maintenance costs and inflation weighed on operating expenses

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 6 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the passenger transportation, ground & sea peer group is "buy."

• Wall Street's median 12-month price target for Hertz Global Holdings Inc is $2.25, about 0.4% below its November 4 closing price of $2.26

Reuters Recommended Reads

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• Nov 4 - Expedia Q3 revenue beats on B2B strength, lifts outlook

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)