Hertz stock gains after earnings beat
Car-rental giant Hertz Global Holdings Inc. swung to a profit in its second quarter on record revenue, sending shares of the company higher in after-market trading.
The Estero, Fla.-based company said Tuesday that revenue rose 5% to $2.5 billion, above the consensus forecast of $2.47 billion. Shares of Hertz were up about 6% during after-market trading, and its stock has surged 25% so far this year.
Hertz had struggled to turn around its operations for years after accounting errors forced it to adjust years of financial results. The company’s stock has fallen 86% from its peak in 2014. More recently, Hertz has largely attributed flagging financial results to deeper-than-expected depreciation on small and midsize vehicles.
"Our results were achieved through quality top-line growth, productivity improvements and effective fleet management," Hertz Chief Executive Kathryn Marinello said. "Through disciplined execution, investments in new revenue opportunities and by aligning ourselves with our customers, we are strategically positioned for future growth."
Ms. Marinello succeeded former CEO John Tague amid continued losses at the company and an increased presence from activist investor Carl Icahn, whose allies hold several board seats. Mr. Icahn owns a nearly 30% stake in the company, according to FactSet, and has been its largest shareholder for the past few years.
Overall, the company posted a profit for the second quarter of $38 million, or 40 cents a share, compared with a net loss of $63 million, or 66 cents a share, a year earlier. Adjusted earnings were 74 cents a share, above the 48 cents a share analysts polled by FactSet were expecting.
Source: Read Full Article