Global car rental company Hertz (NASDAQ: HTZ) will be reporting results tomorrow before market hours. Here’s what you need to know.
Hertz missed analysts’ revenue expectations by 3.7% last quarter, reporting revenues of $2.04 billion, down 6.6% year on year. It was a softer quarter for the company, with a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EPS estimates.
Is Hertz a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Hertz’s revenue to decline 2.6% year on year to $2.03 billion, a reversal from the 1.6% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.98 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 Q1 results, giving us a hint as to what we can expect. Schneider delivered year-on-year revenue growth of 6.3%, meeting analysts’ expectations, and Ryder reported revenues up 1.1%, in line with consensus estimates. Schneider traded up 5.9% following the results while Ryder’s stock price was unchanged.
Read our full analysis of Schneider’s results here and Ryder’s results here.
There has been positive sentiment among investors in the ground transportation segment, with share prices up 9.9% on average over the last month. Hertz is up 70.4% during the same time and is heading into earnings with an average analyst price target of $3.31 (compared to the current share price of $6.84).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.
