NYSE$HRI
Herc Holdings · Q3 2020 earnings
Q3 2020 earnings · · Investor relations
Briefing
Herc Holdings' financial performance reflected sequential volume improvement and successful cost control initiatives.
Herc Holdings reported Q3 2020 results with equipment rental revenue of $402.3 million and total revenues of $456.7 million. Net income was $39.9 million, or $1.35 per diluted share. Adjusted EBITDA was $196.7 million with an adjusted EBITDA margin of 43.1%. Full year 2020 adjusted EBITDA guidance was raised to a range of $655 million to $675 million.
- Equipment rental revenue was $402.3 million, while total revenues reached $456.7 million.
- Net income amounted to $39.9 million, translating to $1.35 per diluted share.
- Adjusted EBITDA stood at $196.7 million, with an improved adjusted EBITDA margin of 43.1%.
- Full year 2020 adjusted EBITDA guidance was raised to a range of $655 million to $675 million.
Headline financials
Revenue & EPS history
Herc Holdings · Revenue · Quarterly
$457M
Revenue by segment
Herc Holdings · $457M total across 4 segments · Q3 2020
- Equipment Rental$402M-12.5%88.1%
- Sales of Rental Equipment$45.3M+28.0%9.9%
- New Equipment & Parts$6.2M-38.0%1.4%
- Service and Other$2.9M-6.5%0.6%
Forward guidance
The Company raised adjusted EBITDA guidance for the full year to a range of $655 million to $675 million and net fleet capital expenditures to a range of $190 million to $210 million.
Tailwinds
- Improving efficiency in the third quarter reflects ability to manage through challenging times.
- Adjusted EBITDA margin for the fourth quarter and full year should improve versus the comparable prior-year periods.
- Strong free cash flow position for the nine-month period ending September 30, 2020, is already substantially higher than the amount generated for the full year 2019, and should continue to improve during the remainder of the year.
- Reduced leverage and ample liquidity, is well positioned for 2021.
- Committed to helping customers operate efficiently, effectively and safely.
Headwinds
- Estimate fourth quarter fleet on rent is likely to decline approximately 4% to 6%.
- Rental revenue to decline approximately 6% to 8% year-over-year.
- COVID-19 business slowdown impacted volume and pricing.
- Challenging business environment.
- Normal seasonality returned to the business
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 Q3 2020
-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
| Quarter | Report date | Reaction (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% | — | — |
Discussion
Share your read of this quarter. Sign-in carries your eToro identity.
Join the conversation
Sign in with eToro to post your read of this quarter and vote on others'.
Sign in with eToro