NYSE$HRI

Herc Holdings · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Herc Holdings reported strong second-quarter results, marked by record equipment rental revenue and total revenue.

Herc Holdings reported a strong second quarter with a 25% increase in total revenues to $802 million and a 12% increase in net income to $76 million. Equipment rental revenue increased by 16% to $702 million, driven by higher pricing and volume. The company reaffirmed its full-year 2023 adjusted EBITDA guidance.

  • Equipment rental revenue reached a record $702 million, up 16%.
  • Total revenues also hit a record $802 million, a 25% increase.
  • Net income rose to $76 million, or $2.66 per diluted share, a 12% increase.
  • Adjusted EBITDA increased 24% to $352 million, with a margin of 43.9%.

Headline financials

Total Revenue

$802M

Previous: $640M+25.2%
EPS (adj)

$2.69

Previous: $2.47+8.9%
Total Fleet OEC

$6.2B

Previous: $5.1B+21.6%
Capital Expenditures

-$77M

Previous: -$27.5M-180.0%
Free Cash Flow

-$1M

Previous: $44.7M-102.2%
Net Income

$76M

Previous: $72.2M+5.3%
Operating Income

$217M

Previous: $196M+10.9%
Gross Profit

$408M

Previous: $356M+14.6%
Cash & Equivalents

$37M

Previous: $52.1M-29.0%
Total Assets

$6.7B

Previous: $5.31B+26.1%
Stock-Based Comp

$5M

Previous: $5.3M-5.7%

Revenue & EPS history

Herc Holdings · Revenue · Quarterly

$802M

Q2 2023+25.2%vs Q2 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Herc Holdings · $802M total across 4 segments · Q2 2023

  • Equipment Rental
    $702M+16.0%
  • Sales of Rental Equipment
    $83M+330.1%
  • New Equipment & Parts
    $10M+6.4%
  • Service and Other
    $7M+11.1%

Forward guidance

The Company is reaffirming its full year 2023 adjusted EBITDA guidance range and net rental capital expenditures guidance.

Tailwinds

  • Expects to continue to gain share.
  • Capturing an outsized position of the forecasted higher construction spending in 2023.
  • Investing in its fleet.
  • Capitalizing on strategic acquisitions and greenfield opportunities.
  • Cross-selling a diversified product portfolio.

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 2023

Historical avgQ2 2023

-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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