NYSE$HRI

Herc Holdings · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Herc Holdings' third quarter performance was strong, with significant revenue and income growth driven by robust demand and effective cost management.

Herc Holdings reported a strong third quarter in 2022, marked by significant increases in equipment rental revenue, total revenue, and net income. The company's adjusted EBITDA also saw substantial growth, and they raised their full-year adjusted EBITDA guidance.

  • Equipment rental revenue increased by 35.9% to a record $706.2 million.
  • Total revenues increased by 35.4% to $745.1 million.
  • Net income increased by 40.2% to $101.4 million, or $3.36 per diluted share.
  • Adjusted EBITDA grew by 40.3% to a record $345.0 million, with adjusted EBITDA margin expanding to 46.3%.

Headline financials

Total Revenue

$745M

Previous: $550M+35.4%
EPS (adj)

$3.42

Previous: $2.38+43.7%
Total Fleet OEC

$5.4B

Previous: $4.1B+31.7%
Capital Expenditures

-$81.7M

Previous: -$31.1M-162.7%
Free Cash Flow

$19.7M

Previous: $41.2M-52.2%
Net Income

$101M

Previous: $72.3M+40.2%
Operating Income

$218M

Previous: $163M+33.9%
Gross Profit

$426M

Previous: $313M+35.9%
Cash & Equivalents

$56.9M

Previous: $35.2M+61.6%
Total Assets

$5.68B

Previous: $4.13B+37.5%
Stock-Based Comp

$8.6M

Previous: $5.5M+56.4%

Revenue & EPS history

Herc Holdings · Revenue · Quarterly

$745M

Q3 2022+35.4%vs Q3 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Herc Holdings · $745M total across 4 segments · Q3 2022

  • Equipment Rental
    $706M+35.9%
  • Sales of Rental Equipment
    $21.5M+29.5%
  • New Equipment & Parts
    $10M+16.3%
  • Service and Other
    $7.4M+32.1%

Forward guidance

The Company updated its full year 2022 adjusted EBITDA guidance range and net rental capital expenditures guidance. The updated guidance range for the full year 2022 adjusted EBITDA reflects an increase of 36% to 40% compared to full year 2021 results.

Tailwinds

  • Demand from our customers continues to be strong as we close out 2022.
  • We continue to benefit from tight equipment inventory
  • Believe a secular shift from ownership to rental is accelerating.
  • With the steady announcement of new industrial, alternative energy and infrastructure projects
  • We believe we are well-positioned to generate continued revenue growth in 2023 and beyond.

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 2022

Historical avgQ3 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%

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