NYSE$HRI

Herc Holdings · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Herc Holdings reported record equipment rental revenue and total revenues, while experiencing a decrease in net income due to decelerating local-market revenue growth.

Herc Holdings reported a 6% increase in total revenues to $848 million and a record equipment rental revenue of $765 million. However, net income decreased by 8% to $70 million due to slower growth in the local market and increased operating expenses. The company reaffirmed its full-year 2024 guidance.

  • Record equipment rental revenue of $765 million, an increase of 9%.
  • Record total revenues of $848 million, an increase of 6%.
  • Rental pricing increased 3.5% year-over-year.
  • Net income decreased 8% to $70 million, or $2.46 per diluted share.

Headline financials

Total Revenue

$848M

Previous: $802M+5.7%
EPS (adj)

$2.60

Previous: $2.69-3.3%
Capital Expenditures

-$71M

Previous: -$77M+7.8%
Free Cash Flow

-$1M

Previous: -$1M+0.0%
Net Income

$70M

Previous: $76M-7.9%
Operating Income

$291M

Previous: $217M+34.1%
Gross Profit

$492M

Previous: $408M+20.6%
Cash & Equivalents

$70M

Previous: $37M+89.2%
Total Assets

$7.58B

Previous: $6.7B+13.1%
Stock-Based Comp

$4M

Previous: $5M-20.0%

Revenue & EPS history

Herc Holdings · Revenue · Quarterly

$848M

Q2 2024+5.7%vs Q2 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 reaffirming 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
  • As a leader in an industry where scale matters, the Company expects to continue to gain share by capturing an outsized position of the forecasted higher construction spending in 2024 by investing in its fleet, optimizing its existing fleet, capitalizing on strategic acquisitions and greenfield opportunities, and 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 2024

Historical avgQ2 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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