Hertz’s Revenue and Earnings Soar
The equipment rental business rents equipment through approximately 340 branches in the United States, Canada, France, Spain, China and Saudi Arabia, as well as through international licensees. In Sept. 2011, Hertz acquired Donlen Corporation, a leader in providing fleet leasing and management services. On Nov. 19, 2012, Hertz completed the acquisition of Dollar Thrifty Automotive Group, a car and truck rental and leasing business operating in the value end of the business.
Revenues and earnings have soared as the economy has picked up. Second quarter 2013 revenues increased 22.0% to $2.7 billion, an increase of 22% year-over-year as car rental revenues for the quarter increased 23.3% (largely due to the acquisition of Dollar Thrifty) and equipment rental revenues of $384.3 million were up 14.7% as volume increased on strong industrial and improving construction performance..
Second quarter 2013 net income was up almost 24% while adjusted net income (adjusted for restructuring, acquisition and non cash debt charges) was $204.4 million, versus $154.4 million in the same period of 2012, resulting in adjusted diluted earnings per share for the quarter of $0.45, compared to $0.35 for the second quarter of 2012.
Consensus earnings forecasts on Yahoo Finance point to strong growth with annual growth averaging 22.7% forecast for the next five years. The company itself expects to generate worldwide revenues in the range of $10,850 million - $10,950 million, and adjusted diluted earnings per share in the range of $1.82 - $1.92. With diversified revenues in value and premium rentals, equipment rental and leasing globally the company is well placed from the current cyclical upswing which appears to be still in its early stages. (Hertz Expands Value Brand Firefly Into US)
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Disclosure: The author holds no positions in the above mentioned stocks