分组1 - Herc Holdings reported quarterly earnings of $3.58 per share, missing the Zacks Consensus Estimate of $4.18 per share, but showing an increase from $3.24 per share a year ago, resulting in an earnings surprise of -14.35% [1] - The company posted revenues of $934 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.54%, compared to year-ago revenues of $831 million [2] - The stock has gained approximately 9.8% since the beginning of the year, outperforming the S&P 500's gain of 2.9% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $2.38 on revenues of $828.6 million, and for the current fiscal year, it is $15.09 on revenues of $3.59 billion [7] - The Zacks Industry Rank for Transportation - Equipment and Leasing is currently in the top 25% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Revenue and Market Conditions - The company's revenues are significantly affected by the cyclical nature of the construction and industrial sectors, with a decline in these activities leading to decreased demand for rental equipment [72]. - A substantial portion of revenues is derived from equipment rentals to contractors in the non-residential construction market, making the company vulnerable to fluctuations in construction activity [73]. - Economic conditions, including oil and gas prices, can adversely impact capital investments and maintenance expenditures, further affecting rental demand [73]. - Equipment rental revenues for 2024 reached $3.2 billion, an increase of 11% compared to 2023, driven by a 9.3% increase in equipment volume and a 3.2% increase in pricing [180]. - Total revenues for 2024 were $3.568 billion, reflecting a $286 million or 9% increase from 2023 [186]. Competition and Market Dynamics - The company faces competitive pressures from various market participants, which could lead to decreased market share and pricing power [77]. - The rental equipment market is highly fragmented, with price being a primary competitive factor, impacting revenue if pricing strategies do not align with competitors [95]. - The company faced intense competition, with key national account customers accounting for 45% of rental revenue in 2024, which could adversely affect financial results if relationships decline [101]. Operational Challenges - Relationships with key suppliers are critical; disruptions in supply chains can negatively impact the company's ability to meet customer needs and execute growth plans [78]. - The company has experienced delays in receiving equipment due to global supply chain issues, which could impair operational performance [79]. - Significant components of expenses are fixed in the short term, leading to lower profitability during off-peak seasons, particularly in the construction industry [99]. - The company may experience inefficiencies due to employee turnover and competition for talent, affecting business continuity and operational efficiency [97]. Financial Position and Debt - The company has total outstanding debt of approximately $4.1 billion as of December 31, 2024, which significantly impacts cash flow and profitability [126]. - An increase in interest rates could raise the cost of servicing the company's debt, adversely affecting profitability [131]. - The company may face challenges in refinancing its indebtedness, which could lead to increased costs and operational restrictions [132]. - The company’s ability to incur additional secured indebtedness may be impaired due to the encumbrance of substantially all its assets under its revolving credit facility [129]. Acquisitions and Strategic Transactions - The company is pursuing strategic transactions, including acquisitions and divestitures, to enhance or expand its business operations [115]. - The company completed 9 acquisitions in 2024, adding 28 branches with a net cash outflow of $600 million, and opened 23 new greenfield locations [181]. - Any significant acquisition may require additional financing, which could be difficult to obtain due to the company's substantial indebtedness [118]. - A significant divestiture could result in immediate loss of revenues and earnings, requiring potential amendments to existing debt [119]. Cybersecurity and IT Risks - The reliance on centralized IT systems increases vulnerability to cybersecurity threats, which could disrupt operations and harm the company's reputation [81]. - The Board of Directors assumed direct oversight of the cybersecurity program in 2024, receiving periodic updates on risks and incidents [140]. - The company has established a cybersecurity crisis management team responsible for significant incident communication and resolution updates to the Board [141]. - The cybersecurity program includes technical safeguards such as firewalls and intrusion detection systems, with regular assessments to improve these measures [143]. - The company has a risk-based approach to managing cybersecurity risks presented by third parties, including vendors and service providers [145]. Environmental and Regulatory Risks - Climate change and regulatory responses may negatively impact the company's operations and demand for services, requiring potential capital expenditures to meet new standards [112]. - Environmental liabilities accrued as of December 31, 2024, were $0.5 million, which could increase if unforeseen compliance costs arise [111]. Financial Performance and Metrics - Net income for 2024 was $211 million, a decrease of 39% from $347 million in 2023 [186]. - Basic earnings per share (EPS) for 2024 was $7.43, down from $12.18 in 2023, representing a decline of 38.0% [268]. - The effective tax rate increased to 27% in 2024, compared to 22% in 2023, influenced by non-deductible goodwill impairment and changes in stock-based compensation benefits [193]. - Cash generated from operating activities increased by $139 million in 2024 compared to 2023, totaling $1,225 million [198]. - Total assets increased to $7,877 million in 2024, compared to $7,061 million in 2023, marking a growth of 11.5% [265].

Financial Performance - Total revenues for 2024 reached $3,568 million, a 9% increase compared to $3,282 million in 2023[6] - Adjusted net income for 2024 was $367 million, or $12.88 per diluted share, a 5% increase from the prior year[12] - Adjusted EBITDA for 2024 increased 9% to $1,583 million, with an adjusted EBITDA margin of 44.4%[12] - Total revenues for Q4 2024 reached $951 million, a 14.5% increase from $831 million in Q4 2023[25] - Equipment rental revenue for the year ended December 31, 2024, reached $3,189 million, an increase of 11.1% from $2,870 million in 2023[40] - Adjusted earnings per diluted share for the year ended December 31, 2024, were $12.88, compared to $12.30 in 2023, reflecting a growth of 4.7%[42] Revenue and Rental Growth - Record equipment rental revenue of $839 million in Q4 2024, an increase of 12% year-over-year[6] - Equipment rental revenue was $839 million, up 12.1% from $748 million year-over-year[25] - Rental pricing increased by 3.2% year-over-year in 2024[6] - For 2025, the company expects equipment rental revenue growth of 4% to 6% and adjusted EBITDA between $1.575 billion and $1.650 billion[15] Cash Flow and Debt - Free cash flow for the year ended December 31, 2024, was $314 million[6] - Free cash flow for the year ended December 31, 2024, was $314 million, a significant improvement from a negative free cash flow of $(65) million in 2023[47] - Net debt as of December 31, 2024, was $4.0 billion, with net leverage of 2.5x[13] - Long-term debt rose to $4,069 million in 2024, up from $3,673 million in 2023[27] - Interest expense for the year ended December 31, 2024, was $260 million, an increase from $224 million in 2023[40] Acquisitions and Expansion - The company completed nine acquisitions and opened 23 new greenfield locations in 2024[13] - The company plans to continue expanding its rental equipment fleet and investing in new technologies to enhance operational efficiency[31] Asset and Expense Management - Total assets increased to $7,877 million as of December 31, 2024, compared to $7,061 million in 2023[27] - Total expenses for the three months ended December 31, 2024, were $994 million, compared to $708 million in the same period of 2023, indicating a rise of 40.4%[37] - The company incurred a loss on assets held for sale amounting to $194 million in Q4 2024[25] - The company reported a loss on assets held for sale of $194 million for the year ended December 31, 2024[42] Dividend and Shareholder Returns - The company declared a quarterly dividend of $0.665 per share, paid on December 27, 2024[13] Quarterly Performance - Net loss for Q4 2024 was $46 million, compared to a net income of $91 million in Q4 2023[25] - Adjusted EBITDA for the year ended December 31, 2024, was $1,583 million, reflecting a margin of 44.4%[40] - Adjusted EBITDA margin for Q4 2024 was 46.1%, slightly up from 46.0% in Q4 2023[33]

Core Viewpoint - The market anticipates Herc Holdings (HRI) will report a year-over-year increase in earnings driven by higher revenues for the quarter ended December 2024, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Herc Holdings is expected to report quarterly earnings of $4.18 per share, reflecting a year-over-year increase of +29% [3]. - Revenues are projected to reach $919.84 million, which is a 10.7% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 15.9% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10]. - The Most Accurate Estimate for Herc Holdings is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.08% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with positive readings being more predictive of earnings beats [6][7]. - Stocks with a positive Earnings ESP and a strong Zacks Rank (1-3) have historically shown a nearly 70% success rate in delivering positive surprises [8]. Historical Performance - In the last reported quarter, Herc Holdings was expected to post earnings of $4.48 per share but delivered only $4.35, resulting in a surprise of -2.90% [12]. - The company has not beaten consensus EPS estimates in any of the last four quarters [13]. Industry Comparison - Ryder, another player in the Zacks Transportation - Equipment and Leasing industry, is expected to report earnings of $3.42 per share for the same quarter, indicating a year-over-year change of +15.9% [17]. - Ryder's revenues are expected to be $3.36 billion, up 11.2% from the previous year, with an unchanged EPS estimate over the last 30 days [17][18].

Robert F. Abbott has been investing his family’s accounts since 1995, and in 2010 added options, mainly covered calls and collars with long stocks. He is a freelance writer, and his projects include a website that provides information for new and intermediate-level mutual fund investors. A resident of Airdrie, Alberta, Canada, Robert has earned Bachelor of Arts and Master of Business Administration (MBA) degrees.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the co ...

Scaling for Sustainable Growth Q3 2024 EARNINGS CONFERENCE CALL October 22, 2024 HercRentals® Herc Rentals Team and Agenda Larry Silber President & Chief Executive Officer Aaron Birnbaum Senior Vice President & Chief Operating Officer Mark Humphrey Senior Vice President & Chief Financial Officer Leslie Hunziker Senior Vice President Investor Relations, Communications & Sustainability Agenda | --- | |----------------------| | Safe Harbor | | YTD Overview | | Q3 Operations Review | | Q3 Financial Review | | 2 ...

Herc Holdings (HRI) came out with quarterly earnings of $4.35 per share, missing the Zacks Consensus Estimate of $4.48 per share. This compares to earnings of $4 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -2.90%. A quarter ago, it was expected that this equipment rental supplier would post earnings of $2.94 per share when it actually produced earnings of $2.60, delivering a surprise of -11.56%.Over the last four quarters, ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _______________________________________________________________________________ FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-33139 HERC HOLDINGS INC. (Exact name of registrant as specified in its ...

Herc Holdings Reports Nine Months 2024 Results and Updates 2024 Full Year Guidance Third Quarter 2024 Highlights – Record equipment rental revenue of $866 million, an increase of 13% – Record total revenues of $965 million, an increase of 6% – Rental pricing increased 2.3% year-over-year – M&A and greenfield openings offset impact from decelerating local-market revenue growth – Net income increased 8% to $122 million, or $4.28 per diluted share – Adjusted EBITDA of $446 million increased 9%; adjusted EBITDA ...

Herc Holdings (HRI) shares rallied 3.5% in the last trading session to close at $173.95. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 10.1% gain over the past four weeks. Herc Holdings is benefitting from favorable rental pricing, increasing fleet efficiency and expanding market share. Driven by the tailwinds, HRI shares have gained 17% on a year-to-date basis. This equipment rental supplier is expected to ...