Herc Holdings Inc (HRI) Q3 2024 Earnings Call Highlights: Record Revenue and Strategic Growth ...

GuruFocus.com10-23

Rental Revenue Growth: Increased 13.2% in Q3 2024. Adjusted EBITDA: Increased 8.8% to a record $446 million. Rental Rate Increase: Up 2.3% year-over-year in Q3 and 3.5% year-to-date. Net Cash Spent on...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHerc Holdings Inc (HRI) Q3 2024 Earnings Call Highlights: Record Revenue and Strategic Growth ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-23 15:03 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/herc-holdings-inc-hri-q3-070358150.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Rental Revenue Growth: Increased 13.2% in Q3 2024.\nAdjusted EBITDA: Increased 8.8% to a record $446 million.\nRental Rate Increase: Up 2.3% year-over-year in Q3 and 3.5% year-to-date.\nNet Cash Spent on...</p>\n\n<a href=\"https://finance.yahoo.com/news/herc-holdings-inc-hri-q3-070358150.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"HRI","symbol_name":"Herc Holdings Inc.","start_time":0,"source_url":"https://finance.yahoo.com/news/herc-holdings-inc-hri-q3-070358150.html","article_id":"2477309375","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/KfdCFbb83xk3rFQTnedvCQ--~B/aD01MDA7dz01MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/21b957879cd595f9d188eec711485411"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2477309375","pubTimestamp":1729667038,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Rental Revenue Growth: Increased 13.2% in Q3 2024.Adjusted EBITDA: Increased 8.8% to a record $446 million.Rental Rate Increase: Up 2.3% year-over-year in Q3 and 3.5% year-to-date.Net Cash Spent on Acquisitions: $277 million in Q3 2024.Fleet Composition: Total fleet at $7.1 billion as of September 30, 2024.Specialty Fleet: Represents approximately 23% of the total fleet.Net Income Impact: Affected by higher interest expense and non-rental amortization expense.ROIC: Declined 160 basis points to 10% at the end of Q3 2024.Leverage Ratio: 2.7 times, within the target range of 2 to 3 times.Dividend: Quarterly dividend of $0.665, totaling $2.66 per share for the year.2024 Guidance: Rental revenue growth expected at 9.5% to 11%; adjusted EBITDA guidance range unchanged at $1.55 billion to $1.6 billion.GuruFocus has detected 8 Warning Signs with HRI.Herc Holdings Inc  achieved a 13.2% increase in rental revenue and an 8.8% increase in adjusted EBITDA, setting a record at $446 million.Herc Hold","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"HRI":"Herc Holdings Inc."},"translate_title":"Herc Holdings Inc(HRI)2024年第三季度收益看涨期权亮点：创纪录的收入和战略增长...","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"HRI":1},"content_text":"Rental Revenue Growth: Increased 13.2% in Q3 2024.\nAdjusted EBITDA: Increased 8.8% to a record $446 million.\nRental Rate Increase: Up 2.3% year-over-year in Q3 and 3.5% year-to-date.\nNet Cash Spent on Acquisitions: $277 million in Q3 2024.\nFleet Composition: Total fleet at $7.1 billion as of September 30, 2024.\nSpecialty Fleet: Represents approximately 23% of the total fleet.\nNet Income Impact: Affected by higher interest expense and non-rental amortization expense.\nROIC: Declined 160 basis points to 10% at the end of Q3 2024.\nLeverage Ratio: 2.7 times, within the target range of 2 to 3 times.\nDividend: Quarterly dividend of $0.665, totaling $2.66 per share for the year.\n2024 Guidance: Rental revenue growth expected at 9.5% to 11%; adjusted EBITDA guidance range unchanged at $1.55 billion to $1.6 billion.\n\n\nWarning! GuruFocus has detected 8 Warning Signs with HRI.\n\nRelease Date: October 22, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nHerc Holdings Inc (NYSE:HRI) achieved a 13.2% increase in rental revenue and an 8.8% increase in adjusted EBITDA, setting a record at $446 million.\nThe company successfully expanded its market share through strategic acquisitions and Greenfield openings, adding 26 locations and opening 16 new branches year-to-date.\nHerc Holdings Inc (NYSE:HRI) reported strong growth in its specialty equipment segment, which now represents approximately 23% of the total fleet.\nThe company maintained pricing discipline, with rental rates increasing by 2.3% year-over-year in the quarter and 3.5% year-to-date.\nHerc Holdings Inc (NYSE:HRI) continues to capitalize on mega projects, which are driving significant revenue growth and positioning the company as a top solutions provider in various end markets.\n\n Negative Points \n\nThe company faced challenges in the local market due to higher interest rates and macroeconomic uncertainties, impacting project starts and local rental business.\nNew acquisitions and Greenfield locations initially generated lower incremental margins, affecting overall profitability in the short term.\nHerc Holdings Inc (NYSE:HRI) experienced a decline in trailing 12-month ROIC by 160 basis points to 10%, partly due to the impact of acquisitions and Greenfield expansions.\nThe company is dealing with near-term inefficiencies from new locations, which are expected to improve over time but currently weigh on fleet efficiency and dollar utilization.\nHigher interest expenses related to increased borrowings for acquisitions and rental equipment investments impacted net income.\n\n Q & A Highlights \nQ: Can you discuss the impact of the recent hurricanes on fleet utilization and expectations for the fourth quarter? A: Mark Humphrey, CFO: We expect some uplift from the hurricanes, but it's too early to pinpoint the exact impact. The storms affected three regions and had different durations and impacts. We achieved fleet efficiency in the core business, but M&A activity weighed on us in the quarter.\nQ: How should we think about pricing trends and margin stability heading into 2025? A: Mark Humphrey, CFO: The sequential improvement in pricing was in line with expectations. Historically, Q4 pricing is slightly less than Q3, but directionally, you're not far off. Stable margins depend on demand driving into our fixed cost structure.\nQ: What is driving the increase in CapEx, and how does it relate to mega projects? A: Aaron Birnbaum, COO: We raised revenue guidance, and our CapEx aligns with customer needs, especially in mega projects. Although we've bought less fleet year-to-date compared to last year, we're matching fleet mix to customer demand, particularly in the mega project arena.\nQ: Can you provide insights into the competitive nature of mega projects and your market share? A: Aaron Birnbaum, COO: We've achieved a market share multiple of three to four times our current share. Mega projects require scale, technology, a young fleet, and a strong safety program. Our specialty offering and fleet supplement our core capabilities, enhancing our penetration in these projects.\nQ: How is the transition to retail and wholesale channels for used equipment sales progressing? A: Aaron Birnbaum, COO: We're in the early innings of transitioning to retail and wholesale channels. This is our first full year focusing on this strategy, and we expect the mix of used equipment sales to continue improving, leading to higher proceeds each quarter.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2477309375"}