NYSE$HRI

Herc Holdings · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Herc Holdings reported strong second-quarter results, driven by increased equipment rental revenue and adjusted EBITDA.

Herc Holdings reported a strong second quarter with equipment rental revenue increasing by 35.1% to $605.4 million and total revenues increasing by 30.5% to $640.4 million. Net income increased by 53.3% to $72.2 million, or $2.38 per diluted share. The company is also initiating a share repurchase program.

  • Equipment rental revenue increased 35.1% to a record $605.4 million.
  • Total revenues increased 30.5% to $640.4 million.
  • Net income increased 53.3% to $72.2 million, or $2.38 per diluted share.
  • Adjusted EBITDA grew 36.8% to a record $284.2 million.

Headline financials

Total Revenue

$640M

Previous: $491M+30.5%
EPS (adj)

$2.47

Previous: $1.57+57.3%
Total Fleet OEC

$5.1B

Previous: $3.76B+35.6%
Capital Expenditures

-$27.5M

Previous: -$20.9M-31.6%
Free Cash Flow

$44.7M

Previous: $26.2M+70.6%
Net Income

$72.2M

Previous: $47.1M+53.3%
Operating Income

$196M

Previous: $140M+39.5%
Gross Profit

$356M

Previous: $264M+35.1%
Cash & Equivalents

$52.1M

Previous: $34.6M+50.6%
Total Assets

$5.31B

Previous: $3.68B+44.2%
Stock-Based Comp

$5.3M

Previous: $7.1M-25.4%

Revenue & EPS history

Herc Holdings · Revenue · Quarterly

$640M

Q2 2022+30.5%vs Q2 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Herc Holdings · $640M total across 4 segments · Q2 2022

  • Equipment Rental
    $605M+35.1%
  • Sales of Rental Equipment
    $19.3M-36.3%
  • New Equipment & Parts
    $9.4M+20.5%
  • Service and Other
    $6.3M+31.3%

Forward guidance

The Company updated its full year 2022 adjusted EBITDA guidance range and maintained net rental capital expenditures guidance. The updated guidance range for the full year 2022 adjusted EBITDA reflects an increase of 34% to 39% compared to full year 2021 results.

Tailwinds

  • Demand for our equipment rental services continues to be strong
  • Benefit from tight equipment inventory
  • Belief in a secular shift from ownership to rental by our customers
  • New infrastructure projects being announced daily
  • Well positioned to generate continued growth in 2023

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 Q2 2022

Historical avgQ2 2022

-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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