Global car rental company Hertz (NASDAQ: HTZ) will be reporting earnings this Tuesday morning. Here’s what you need to know.
Hertz beat analysts’ revenue expectations by 1.3% last quarter, reporting revenues of $2.19 billion, down 7.1% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.
Is Hertz a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Hertz’s revenue to decline 6.7% year on year to $2.40 billion, a further deceleration from the 4.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.07 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Hertz has missed Wall Street’s revenue estimates five 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. Saia posted flat year-on-year revenue, beating analysts’ expectations by 1%, and Avis Budget Group reported revenues up 1.1%, topping estimates by 1.8%. Saia traded up 5.7% following the results while Avis Budget Group was down 6.1%.
Read our full analysis of Saia’s results here and Avis Budget Group’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 down 8.6% during the same time and is heading into earnings with an average analyst price target of $4.01 (compared to the current share price of $5.12).
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