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Hertz Stock up 4% Premarket After Earnings Beat

Dow Jones2023-04-27

Hertz Global Holdings Inc.'s stock $(HTZ)$ rose nearly 4% premarket Thursday, after the car-rental company posted better-than-expected first-quarter earnings, even as net income fell from a year ago. Estero, Fla.-based Hertz had net income of $196 million, or 61 cents a share, for the quarter, down from $426 million, or 82 cents a share, in the year-earlier period.

Adjusted per-share earnings came to 39 cents, ahead of the 19 cent FactSet consensus. Revenue rose to $2.047 billion from $1.810 billion a year ago, ahead of the $2.013 billion FactSet consensus.

The company's costs rose to $1.985 billion from $1.254 billion a year ago, as it continued to invest in technology including electrification, The company, which went bankrupt during the pandemic when shutdowns crushed demand for its cars, said it ended the quarter with $2.2 billion of liquidity, including $728 million in unrestricted cash.

The stock has fallen 1.6% in the year to date, while the S&P 500 has gained 5.6%.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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  • 02:35

    Oversea-Chinese Banking Corporation (OCBC) chairman Andrew Lee has rejected a suggestion carried in The Business Times last month that the bank should sell its Chulia Street headquarters to “rejuvenate” the central business district.Responding to a shareholder’s question about the opinion article, which recommended that the bank sell its trio of buildings “for a handsome profit”, Lee says: “Categorically, we are not picking up the suggestion.”Speaking at OCBC’s 88th annual general meeting on April 17, Lee says the buildings are important to the organisation, and they also have historical value; OCBC Centre at 65 Chulia Street was the late architect I. M. Pei’s first big project in Singapore. Standing at 197.7m, it was Southeast Asia’s tallest skyscraper when it was completed in 1976.Aside from OCBC Centre, the complex also comprises the seven-storey OCBC Centre South at 18 Church Street and the 15-storey OCBC Centre East at 63 Chulia Street.While the OCBC Centre sits on freehold land, the “two ancillary buildings”, as Lee calls them, are located on leasehold land with 42 years remaining. “Over time, of course, we have to top up the lease, but we still have time; we still have 40 over years left,” says Lee. The questions come after an apparent U-turn by management sometime in the previous year. OCBC announced in a bourse filing on April 3, 2024 it was “exploring the redevelopment” of the trio of buildings. Less than a year later, however, CEO Helen Wong said the plans had been “deferred”.Speaking on Feb 26 at the release of the bank's results for FY2024 ended Dec 31, 2024, Wong said that after “further assessment”, management had decided to “delay that planning for a while” with “no exact timetable” ahead. “We explored it and we came to a conclusion: We still have a very iconic building here. Our buildings, our presence [and] our use of it [are] still very important to us, and we [have] now decided that we can delay that for a while.”According to Lee, OCBC’s board of directors ordered a study two years ago on possible redevelopment options for the buildings. “It’s the duty of the board to look at all major assets, where things are, where things can be improved. So, two years ago, yes, we told management: ‘Let’s see what can be done to the surrounding land where the two leasehold buildings are located.’”In addition to the study, Lee says management even contacted “some notable architects” to suggest designs for consideration. Lee thinks it is not the right time to undertake such a redevelopment, which can amount to “something like $4 billion to $5 billion” after accounting for lease top-ups and construction. He adds that such a decision will “strain the balance sheet of the bank”. Notably, Lee adds that “nowhere in the exercise was a suggestion that we sell the building”. “So, I don’t know where that report came [from] or where the idea came from,” he adds, referring to the March 31 opinion article. As the “oldest continuing bank in Singapore”, an institution like OCBC “must have a place”, says Lee, calling the Chulia Street headquarters the group’s “anchor”. “You can’t buy and sell everything.”Lee notes that aside from the trio of buildings, OCBC also owns the Bank of Singapore Centre at 63 Market Street and Great Eastern Centre at 1 Pickering Street. “As a group, we own quite a few buildings in town,” he adds. Further northeast, OCBC announced in September 2024 its $500 million investment into Punggol Digital District for the 430,000 sq ft OCBC Punggol. When completed in 1Q2027, it will become the bank’s second-largest office premises after its head office in Chulia Street.Up to 4,000 OCBC employees — mostly tech staff — will be housed across eight floors of a 12-storey mixed-use tower. OCBC will occupy the fourth to 11th levels of the tower, and fit-out works are expected to be completed in early 2027.

  • 02:32

    OUE Limited’s executive chairman and group CEO, Stephen Riady, has increased his stake in the company on several occasions.On April 8, Riady acquired 479,000 shares for $443,362.50 or 92.5 cents per share via market transaction. The shares were acquired by Lippo Assets (International) Limited (LAIL).Riady has a 100% stake in Lippo Capital Group Limited (LCG), which is the holding company of Lippo Capital Holdings Company Limited (LCH). LCH, in turn, is the intermediate holding company of LAIL.On April 14, Riady, via Hongkong Chinese Limited (HCL), bought 15,000 shares in OUE for $14,153.90 on the open market, or at 94.36 cents apiece. LCH is also the intermediate holding company of HCL.On April 15, Riady bought another 4,800 shares through HCL for $4,512, or 94 cents per share.On April 16, the executive chairman and group CEO purchased 24,400 shares in OUE for $22,931.25 or 93.98 cents. The shares were, again, bought via HCL.Following the purchases, Riady has a total of 552.83 million shares, or a stake of 73.09%, in OUE Limited.For the FY2024 ended Dec 31, 2024, OUE Limited made a loss of $286.8 million compared to earnings of $81.1 million in the year before. The loss was mainly due to the lower share of results of equity-accounted investees and higher fair value losses recognised on investment properties.Shares in OUE closed flat at 94 cents on April 17.

  • 02:28

    CGS International analysts Tay Wee Kuang and Lim Siew Khee have lowered their target price on United Overseas Bank (UOB) to $38.80 from $43 after the bank is likely to see lower earnings in FY2025, FY2026 and FY2027. Tay is taking over coverage from analyst Andrea Choong.In their report dated April 18, Tay and Lim have lowered their earnings per share (EPS) estimates for all three years by 6%, 3.7% and 4%, respectively.While the analysts believe UOB’s 1QFY2025 ended March 31 results may be supported by its previous FY2025 guidance, they see that the bank may report softer loan growth and non-interest income growth amid volatile macroeconomic conditions for the rest of FY2025.

  • 02:28

    Azalea Investment Management - First Closing at US$262 Million for Altrium Private Equity Fund Iii

  • 02:25

    Maybank Securities analyst Hussaini Saifee has reiterated his "buy" call on Singapore Telecommunications (Singtel) with a target price of $3.96, up from $3.72 previously. He cited the telco’s defensive characteristics amid tariffs and macro uncertainty along with safe haven flows as key tailwinds.Despite intensifying competition in Singapore’s mobile consumer market from entrants like Simba, the impact on Singtel remains relatively muted. The segment accounts for just 12–13% of group revenue and contributes less than 5% to the telco’s sum-of-the-parts valuation.Hussaini expects Singtel to post a 15% y-o-y earnings growth in 2HFY2025 when the company delivers its results in late May. The uplift will be driven by profit before tax (PBT) contributions from associates (up 18% y-o-y) alongside y-o-y ebit gains from Optus (up 53%) and NCS (up 44%). “Within associates, Bharti and AIS remain on solid footing and we expect 2H PBT contribution to rise 55% y-o-y and 29% y-o-y, respectively,” he notes.