GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Hertz’s Revenue and Earnings Soar

September 08, 2013 | About:
ABN

ABN

0 followers
Hertz Global Holdings operates its car rental business through the Hertz, Dollar and Thrifty brands from approximately 10,270 corporate, licensee and franchisee locations in North America, Europe, Latin America, Asia, Australia, Africa, the Middle East and New Zealand. Hertz is the largest worldwide airport car rental brand, operating from approximately 8,860 corporate and licensee locations in approximately 150 countries.

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.

846104867.jpg

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.

591145988.jpg

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)

Related articles

Avis Budget Group Updates Guidance

Airlease Surging on Strong International Growth Where to find growth stocks

Risk Disclaimer: This article does not constitute a recommendation to buy or sell. Investing in stocks or other securities and derivatives is a high risk activity and not suitable for everyone. It is strongly recommended that individuals should consult with a SEC registered investment advisor prior to making any investment decisions.

Disclosure: The author holds no positions in the above mentioned stocks


Rating: 3.3/5 (3 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK