While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they beli ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to fi ...

Given the current economic scenario, investors should gauge the changing market dynamics and accordingly chalk out a sturdy investment strategy. Well, you can decide to buy or sell a particular stock by looking at its sales and earnings numbers. However, such a strategy does not always warrant superior returns when the market faces a myriad of issues. A critical analysis of the company’s financial background is always required for a better investment decision.Well, a company should be sound enough to meet i ...

The Transportation group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Herc Holdings (HRI) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Transportation sector should help us answer this question.Herc Holdings is a member of the Transportation sector. This group includes 133 individual stocks and currently holds a Zacks Sector Rank of #10. The Zacks Sector ...

BONITA SPRINGS, Fla.--(BUSINESS WIRE)--Herc Holdings Inc. (NYSE: HRI), one of North America’s leading equipment rental suppliers operating through Herc Rentals Inc., today announced that its U.S. business has earned Great Place to Work® Certification™. The Company’s Canadian business earned this distinction in April 2023. Great Place to Work certification recognizes employers who create an outstanding and consistent employee experience. Receiving this distinguished certification is based on direct feedba ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving ...

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth S ...

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 $3.24 per share, missing the Zacks Consensus Estimate of $3.29 per share. This compares to earnings of $3.44 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -1.52%. A quarter ago, it was expected that this equipment rental supplier would post earnings of $4.10 per share when it actually produced earnings of $4, delivering a surprise of -2.44%.Over the last four quarters, ...

BONITA SPRINGS, Fla.--(BUSINESS WIRE)--Herc Holdings Inc. (NYSE: HRI) ("Herc Holdings" or the "Company") today reported financial results for the quarter and full year ended December 31, 2023. “We closed out 2023 with positive operating momentum, contributing to another year of double-digit revenue and adjusted EBITDA growth. Inflationary pressures were successfully managed through revenue initiatives, and we maintained cost discipline while continuing to invest in our business,” said Larry Silber, presi ...