Global car rental company Hertz (NASDAQ: HTZ) will be reporting earnings this Thursday morning. Here’s what to look for.
Hertz beat analysts’ revenue expectations last quarter, reporting revenues of $2.40 billion, up 9.7% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates and 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 5.9% year on year, a reversal from the 3.8% 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 Q3 results, giving us a hint as to what we can expect. RXO delivered year-on-year revenue growth of 31.7%, beating analysts’ expectations by 2.6%, and Covenant Logistics reported revenues up 19.2%, topping estimates by 6.3%. RXO’s stock price was unchanged after the resultswhile Covenant Logistics was up 7.3%.
Read our full analysis of RXO’s results here and Covenant Logistics’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 up 16.2% during the same time and is heading into earnings with an average analyst price target of $2.13 (compared to the current share price of $2.08).
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