Global car rental company Hertz (NASDAQ:HTZ) will be announcing earnings results tomorrow before market open. Here’s what to expect.
Hertz missed analysts’ revenue expectations by 3.8% last quarter, reporting revenues of $2.58 billion, down 4.7% year on year. It was a softer quarter for the company, with a significant miss of analysts’ adjusted operating income and EPS estimates.
Is Hertz a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Hertz’s revenue to decline 3% year on year to $2.12 billion, a reversal from the 7.3% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.72 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Hertz has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Hertz’s peers in the ground transportation segment, some have already reported their Q4 results, giving us a hint as to what we can expect. XPO posted flat year-on-year revenue, meeting analysts’ expectations, and ArcBest reported a revenue decline of 8.1%, in line with consensus estimates. XPO traded up 8.6% following the results while ArcBest was down 3%.
Read our full analysis of XPO’s results here and ArcBest’s results here.
Investors in the ground transportation segment have had steady hands going into earnings, with share prices flat over the last month. Hertz is up 22.6% during the same time and is heading into earnings with an average analyst price target of $3.41 (compared to the current share price of $4.45).
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