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 ...

Financial Data and Key Metrics - Rental revenue increased by 13.2% in Q3 2024, with adjusted EBITDA up 8.8% to a record $446 million [37] - Rental rate increased by 2.3% year-over-year in Q3 and 3.5% year-to-date, reflecting pricing discipline [22] - Adjusted EBITDA margin expanded by 100 basis points, driven by favorable SG&A expense management and higher proceeds from fleet disposals [36] - Free cash flow year-to-date was $218 million, with a leverage ratio of 2.7x, within the target range of 2x to 3x [28] - Fleet efficiency on an organic basis was positive for the nine months year-to-date, supported by strong execution by the fleet, sales, and operations teams [22] Business Line Performance - Local accounts represented 56% of rental revenue in Q3, with growth driven by acquisitions, greenfield locations, and organic growth in regions with infrastructure and education projects [26] - National account business saw double-digit growth, led by megaprojects in areas like battery storage, energy infrastructure, semiconductor, LNG plants, and data centers [35] - Specialty fleet represents approximately 23% of the total fleet, with room for further growth, excluding Cinelease assets [34] - The company completed two acquisitions in Q3, adding five locations in Florida, Arizona, and California, with Arizona being a top 10 market and a megaproject hotspot [25] Market Performance - The North American rental industry revenue is estimated at $84 billion, with industrial spending projected to reach a record $372 billion in 2024 [9] - Non-residential construction starts are estimated to increase by 6% to $442 billion in 2024, with infrastructure projects slated for $342 billion, a 13% increase over 2023 [9] - The company continues to see solid demand across various end markets, geographies, and project types, with megaprojects representing incremental opportunities [3] Strategic Direction and Industry Competition - The company is focused on increasing market share, geographic density, and optimizing fleet mix, with a strong emphasis on specialty equipment and services [21] - Herc is leveraging proprietary and industry data to enhance its competitive position and customer satisfaction, with a focus on megaprojects and technology advancements [21] - The company is rolling out its operating system, E3OS, to improve fleet efficiency and solidify its competitive advantages [10] - Herc is capitalizing on trends like reshoring manufacturing, infrastructure fortification, and the growth of AI and data centers to drive future opportunities [2] Management Commentary on Operating Environment and Future Outlook - The company expects record rental revenue in Q4 2024, driven by megaprojects, new acquisitions, and hurricane recovery efforts [2] - Management highlighted the transition from post-COVID peak growth to a more normal operating environment, with higher interest rates and macroeconomic uncertainty posing challenges [2] - The company remains confident in its diversified position, which provides resiliency to drive revenue growth and deliver strong operating margins [2] - Herc is managing costs and assets carefully while supporting business growth, with a focus on fleet utilization and cost structure management [2] Other Important Information - The company achieved 97% perfect days in safety performance, with a total recordable incident rate better than the industry benchmark of 1.0 [7] - Herc has successfully integrated 51 businesses with 115 locations into its network since late 2020, generating synergized multiples at maturity of approximately 3.5x to 4.5x [25] - The company is transitioning to a more favorable used equipment sales channel mix, with proceeds at 42% of OEC in Q3, 300 basis points higher than last year [34] Q&A Session Summary Question: Fleet Efficiency and Hurricane Impact - Management expects some uplift from hurricane-related demand in Q4 but noted it is too early to quantify the impact [29][55] - Fleet efficiency was impacted by M&A activity, with about half of the fleet growth in Q3 coming from acquisitions [12] Question: Pricing and Margin Stability - Pricing is expected to remain stable, with exit rates in the low twos range, and the company is positioned to deliver stable margins heading into 2025 [13][59] Question: CapEx Increase and Fleet Growth - The CapEx increase reflects the need to match fleet mix with customer demand, particularly in the megaproject arena, with fleet growth expected to continue into 2025 [14][31] Question: Used Equipment Sales Channel Mix - The company is in the early innings of transitioning to a retail and wholesale channel mix, with expectations of higher proceeds over the next two to three years [65] Question: Megaproject Market Share and Competitive Dynamics - Herc has achieved a market share multiple of 3x to 4x in the megaproject arena, with competitive advantages in scale, technology, and safety programs [64][90] Question: Local Market Performance - Local market growth stabilized in Q3, with organic growth in the plus 7% range, driven by acquisitions and greenfield locations [68][94] Question: Flow-Through and Margin Impact - Flow-through in Q4 is expected to be better than Q3, with cost actions helping to hold margins despite the local market slowdown and M&A drag [57][75] Question: Hurricane Impact on Guidance - The company has baked in a historical average hurricane impact into its Q4 guidance, with potential upside if the hurricanes are worse than average [76][77] Question: Revenue Guidance Raise - The revenue guidance raise was driven by megaproject growth and other tailwinds, with EBITDA impacted by the drag from acquisitions and greenfields [78][80] Question: Specialty vs. General Rent Growth - Specialty fleet grew at double digits in Q3, contributing to overall organic rental revenue growth of 7.3% [93] Question: Local Account Organic Growth - Local account organic growth stabilized in Q3, with contributions from acquisitions and greenfields, but specific organic growth ex-acquisitions was not quantified [94]

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, ...

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 ...

Herc Holdings (HRI) came out with quarterly earnings of $2.60 per share, missing the Zacks Consensus Estimate of $2.94 per share. This compares to earnings of $2.69 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -11.56%. A quarter ago, it was expected that this equipment rental supplier would post earnings of $2.48 per share when it actually produced earnings of $2.36, delivering a surprise of -4.84%. Over the last four quar ...

Second Quarter 2024 Highlights Herc Holdings Reports First Half 2024 Results and Reaffirms 2024 Full Year Guidance Bonita Springs, Fla., July 23, 2024 -- Herc Holdings Inc. (NYSE: HRI) ("Herc Holdings" or the "Company") today reported financial results for the quarter ended June 30, 2024. "In the second quarter, we benefited from positive rental pricing, increasing fleet efficiency, and expanding market share, as we continue to significantly outpace rental-industry growth. Overall, our record second quarter ...

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 June 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 chart ...

Some investment opportunities generate significant upside for investors in a short window of time. Others, however, require patience. One company that I think fits in the latter category is a firm called Herc Holdings (NYSE:HRI). Operationally speaking, the company services customers by renting out equipment such as earth moving devices, material handling equipment, aerial equipment, and even trucks and trailers. The last article that I published about the firm came out in September of 2023. In that article ...