NYSE$HRI

Herc Holdings · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Herc Holdings reported a strong start to 2024 with record first-quarter revenue and adjusted EBITDA margin, driven by key growth markets and strategic investments.

Herc Holdings reported a 9% increase in total revenues to $804 million for the first quarter of 2024. Net income decreased by 3% to $65 million, or $2.29 per diluted share. Adjusted EBITDA increased by 10% to $339 million, with an adjusted EBITDA margin of 42.2%. The company is affirming its full year 2024 guidance.

  • Record first quarter total revenues of $804 million, an increase of 9%.
  • Net income decreased 3% to $65 million, or $2.29 per diluted share.
  • Adjusted EBITDA of $339 million increased 10%; adjusted EBITDA margin increased to 42.2%.
  • Rental pricing increased 5.1% year-over-year.

Headline financials

Total Revenue

$804M

Previous: $740M+8.6%
EPS

$2.29

Previous: $2.35-2.6%
Capital Expenditures

-$30M

Previous: -$33M+9.1%
Free Cash Flow

$35M

Previous: $34M+2.9%
Net Income

$65M

Previous: $67M-3.0%
Operating Income

$306M

Previous: $212M+44.3%
Gross Profit

$468M

Previous: $363M+28.9%
Cash & Equivalents

$63M

Previous: $40M+57.5%
Total Assets

$7.21B

Previous: $6.28B+14.8%
Stock-Based Comp

$5M

Previous: $4M+25.0%

Revenue & EPS history

Herc Holdings · Revenue · Quarterly

$804M

Q1 2024+8.6%vs Q1 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Herc Holdings · $908M total across 4 segments · Q3 2023

  • Equipment Rental
    $765M+8.3%
  • Sales of Rental Equipment
    $124M+476.7%
  • New Equipment & Parts
    $11M+10.0%
  • Service and Other
    $8M+8.1%

Forward guidance

The Company is affirming its full year 2024 equipment rental revenue growth, adjusted EBITDA, and gross and net rental capital expenditures guidance ranges presented below, excluding Cinelease studio entertainment and lighting and grip equipment rental business.

Tailwinds

  • Equipment rental revenue growth: 7% to 10%
  • Adjusted EBITDA: $1.55 billion to $1.60 billion
  • Net rental equipment capital expenditures after gross capex: $500 million to $700 million, after gross capex of $750 million to $1 billion
  • Expects to continue to gain share by capturing an outsized position of the forecasted higher construction spending in 2024
  • Investing in its fleet, optimizing its existing fleet, capitalizing on strategic acquisitions and greenfield opportunities, and cross-selling a diversified product portfolio.

Headwinds

  • Excluding Cinelease studio entertainment and lighting and grip equipment rental business.
  • Sale process for the Cinelease studio entertainment business is ongoing.
  • Unfavorable mix driven primarily by inflation.
  • Net income was $65 million compared to $67 million in the prior-year period.
  • The effective tax rate was 20% compared to 11% in the prior-year period.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

-0.1%

Avg return

Earnings day

-0.7%

Avg return

5 days after

-0.8%

Avg return

30 days after

49%

33 / 67 earnings

Positive

+23.9%

Q3 2024

Best reaction

-16.5%

Q2 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.7%+6.8%+9.9%
Q4 2025-13.0%-11.4%-40.4%
Q3 2025+4.1%+6.6%+3.0%
Q1 2025-8.2%-2.6%+14.6%
Q4 2024-6.0%-10.8%-37.8%
Q3 2024+23.9%+23.9%+28.8%
Q2 2024+1.1%+6.9%-4.2%
Q1 2024+3.6%+2.6%+0.5%
Q4 2023-7.2%-4.7%+1.6%
Q3 2023-1.5%-1.8%+15.9%
Q2 2023-5.4%-5.3%-9.3%
Q1 2023-7.1%-7.6%-5.0%
Q4 2022-2.6%-2.8%-26.1%
Q3 2022-5.3%+3.1%+20.8%
Q2 2022+2.3%+2.1%+17.1%
Q1 2022-16.3%-19.6%-32.3%
Q4 2021-14.3%-11.6%-13.9%
Q3 2021+0.2%-7.6%+0.1%
Q2 2021+0.0%+3.1%+1.8%
Q1 2021+4.1%+12.0%+8.0%
Q4 2020+7.6%+16.1%+36.5%
Q3 2020+2.3%-4.0%+25.5%
Q2 2020+2.1%-3.9%+14.0%
Q1 2020+3.5%+17.1%+14.8%
Q4 2019-0.9%-3.8%-48.1%
Q3 2019-9.8%-6.7%-2.1%
Q2 2019-5.4%-9.9%-8.6%
Q1 2019-6.2%-11.6%-29.3%
Q4 2018+12.2%+7.0%-2.8%
Q3 2018+10.7%+10.9%-11.4%
Q2 2018-7.7%-9.2%-12.1%
Q1 2018+3.9%+6.0%+6.3%
Q4 2017+0.8%+1.7%-1.8%
Q3 2017+14.9%+11.5%+27.0%
Q2 2017-14.9%-14.3%-0.9%
Q1 2017+2.4%-5.7%-14.2%
Q4 2016-6.5%-9.1%-5.4%
Q3 2016+13.4%+21.5%+29.2%
Q4 2015-9.8%-10.8%-1.6%
Q2 2016-9.8%-10.8%-1.6%
Q1 2016-0.4%
Q3 2015-13.0%
Q2 2015+11.5%
Q4 2014+11.5%
Q2 2014+11.5%
Q3 2014+11.5%
Q1 2015+11.5%
Q1 2014+6.3%
Q4 2013-0.9%
Q3 2013-1.5%
Q2 2013-0.6%
Q1 2013-1.6%
Q4 2012+2.2%
Q3 2012-3.7%
Q2 2012+4.5%
Q1 2012+1.5%
Q4 2011-1.7%
Q3 2011+2.1%
Q2 2011-16.5%
Q1 2010-0.4%
Q1 2011+1.5%
Q4 2008+2.3%
Q3 2010+2.2%
Q3 2009+2.2%
Q4 2009-1.1%
Q2 2009-1.1%
Q2 2010-1.1%

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