Global car rental company Hertz (NASDAQ:HTZ) will be reporting earnings tomorrow before market hours. Here’s what to look for.
Hertz missed analysts’ revenue expectations by 4.3% last quarter, reporting revenues of $2.35 billion, down 3.4% year on year. It was a softer quarter for the company, with a miss of analysts’ operating margin and earnings 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 be flat year on year at $2.68 billion, slowing from the 8.3% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.47 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 4 downward revisions over the last 30 days (we track 7 analysts). Hertz has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Hertz’s peers in the ground transportation segment, some have already reported their Q3 results, giving us a hint as to what we can expect. XPO delivered year-on-year revenue growth of 3.7%, beating analysts’ expectations by 1.8%, and RXO reported revenues up 6.6%, in line with consensus estimates. XPO traded up 8.7% following the results while RXO was down 6.6%.
Read our full analysis of XPO’s results here and RXO’s results here.
There has been positive sentiment among investors in the ground transportation segment, with share prices up 4.8% on average over the last month. Hertz is up 4.6% during the same time and is heading into earnings with an average analyst price target of $3.87 (compared to the current share price of $3.17).
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