Herc Holdings Reports Q3 Earnings: Key Highlights

Benzinga10-22

Herc Holdings Inc. (NYSE:HRI) released its third-quarter financial results on Tuesday, reporting adjusted earnings per share of $4.35, missing analyst estimates of $4.48, according to Benzinga Pro. Despite the earnings miss, the company reported revenues of $965 million, surpassing the forecasted $931.31 million.

Q3 Highlights:

  • Total revenues for the quarter increased 6% on a year-over-year basis.
  • Equipment rental revenue hit a quarterly record of $866 million, up 13%.
  • Adjusted EBITDA for the quarter rose 9% to $446 million, on margin of 46.2%.
  • Net income was $122 million, an 8% increase from the prior year.

“In the third quarter, we significantly outpaced overall industry growth on both a total rental revenue basis and from an organic revenue perspective,” said Larry Silber, president and CEO of Herc Holdings. “By capitalizing on our broad end-market coverage, diversified product and services offering and expanding share in resilient urban markets, we continue to deliver strong volume and a solid price/mix performance.”

The company’s rental pricing increased by 2.3% year-over-year, while equipment rental volume grew by 10.7%. Herc also saw its dollar utilization improve to 42.2% compared to 42.1% in the prior year’s quarter.

Herc Holdings raised its equipment rental revenue growth outlook from a range of 7% to 10% to a new range of 9.5% to 11%. The company also reaffirmed full-year adjusted EBITDA guidance of $1.55 billion to $1.6 billion.

HRI Stock Action: Herc Holdings shares were up 8.3% at $183.11 at the time of writing, according to Benzinga Pro.

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Image Via Shutterstock.

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