NYSE$HRI

Herc Holdings · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Herc Holdings' Q3 2024 results were reported, showcasing record equipment rental revenue and increased net income.

Herc Holdings reported a 6% increase in total revenues to $965 million, driven by a 13% increase in equipment rental revenue. Net income rose by 8% to $122 million, and adjusted EBITDA increased by 9% to $446 million. The company updated its full year 2024 equipment rental revenue growth and gross and net rental capital expenditures guidance ranges, while reaffirming its adjusted EBITDA guidance range.

  • Equipment rental revenue reached a record $866 million, a 13% increase year-over-year.
  • Total revenues hit a record $965 million, up 6% from the previous year.
  • Net income increased by 8% to $122 million, with earnings per diluted share at $4.28.
  • Adjusted EBITDA rose by 9% to $446 million, with a margin of 46.2%.

Headline financials

Total Revenue

$965M

Previous: $908M+6.3%
EPS

$4.28

Previous: $4.00+7.0%
Dollar Utilization

42.2%

Previous: 42.1%+0.2%
Adjusted EBITDA

$446M

No prior period
Adjusted EBITDA Margin

46.2%

No prior period
Capital Expenditures

-$127M

Previous: -$119M-6.7%
Free Cash Flow

-$5M

Previous: -$6M+16.7%
Net Income

$122M

Previous: $113M+8.0%
Operating Income

$351M

Previous: $228M+53.9%
Gross Profit

$598M

Previous: $461M+29.7%
Cash & Equivalents

$142M

Previous: $71M+100.0%
Total Assets

$8.17B

Previous: $6.89B+18.6%
Stock-Based Comp

$7M

Previous: $6M+16.7%

Revenue & EPS history

Herc Holdings · Revenue · Quarterly

$965M

Q3 2024+6.3%vs Q3 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

Herc Holdings updated its full year 2024 equipment rental revenue growth and gross and net rental capital expenditures guidance ranges, while reaffirming its adjusted EBITDA guidance range, presented below, which excludes the Cinelease studio entertainment and lighting and grip equipment rental business.

Tailwinds

  • The guidance range for the full year 2024 adjusted EBITDA reflects an increase of 6% to 9% compared to full year 2023 results, excluding Cinelease.
  • Equipment rental revenue growth: 9.5% to 11%
  • Adjusted EBITDA: $1.55 billion to $1.60 billion
  • Net rental equipment capital expenditures after gross capex: $650 million to $700 million after gross capex of $950 million to $1 billion
  • 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 Q3 2024

Historical avgQ3 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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