NYSE$HTZ

Hertz Global Holdings Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Hertz Global Holdings reported a revenue of $832 million and a net loss attributable to the company of $847 million.

Hertz Global Holdings reported a challenging second quarter due to the pandemic's impact on global travel. The company focused on aligning labor with rental demand, canceling fleet orders, cutting non-essential spending, and consolidating locations. Despite a 67% decline in global revenue, there was sequential monthly improvement as states and countries began to re-open.

  • Global revenue declined by 67% due to the pandemic's impact on travel.
  • The company reduced global direct operating and SG&A expenses by 47% year-over-year.
  • Hertz capitalized on trends in new driver and delivery service offerings, cargo trucks, and van rentals.
  • The U.S. used-car market experienced a strong rebound in May and June, with the company ramping up used-car sales efforts.

Headline financials

Total Revenue

$832M

Previous: $2.51B-66.9%
EPS (adj)

-$3.51

Previous: $0.74-574.3%
Vehicle utilization

30.0%

Previous: 80.0%-62.5%
Total RPD

$36.78

Previous: $42.58-13.6%
Total RPU per month

$334.00

Previous: $1.04K-67.9%
Capital Expenditures

-$72M

Previous: -$118M+39.0%
Free Cash Flow

-$919M

Previous: -$80M-1048.8%
Net Income

-$847M

Previous: $38M-2328.9%
Operating Income

-$158M

Previous: $743M-121.3%
Gross Profit

$128M

Previous: $1.12B-88.6%
Cash & Equivalents

$1.4B

Previous: $415M+237.3%
Total Assets

$23.1B

Previous: $26.4B-12.3%
Stock-Based Comp

-$2M

Previous: $5M-140.0%

Revenue & EPS history

Hertz · Revenue · Quarterly

$832M

Q2 2020-66.9%vs Q2 2019
Beat estimate in 9 of 13 quarters(69%)
ActualEstimate

Forward guidance

Hertz expects to generate about $2.5 billion in annualized savings. The company's priority is fleet management, and it aims to continue selling cars aggressively as it right-sizes its fleet.

Tailwinds

  • Disciplined adjustments to cost structure based on revenue fluctuations.
  • Continued strong used-car market allows aggressive car sales.
  • Laser-focused on capturing revenue, driving efficiency, and advancing critical technology.
  • Capitalizing on rental opportunities off airport in the U.S.
  • International fleet trending toward demand levels.

Headwinds

  • The company had to make difficult but necessary decisions to strengthen and position the company for growth.
  • The toughest decisions have been those that impact the livelihood of our dedicated workforce.
  • Voluntarily reorganizing under Chapter 11 in North America.
  • Airport rental car volume declined 82%, roughly in line with airline travel weakness resulting from COVID-19 restrictions.
  • Rise in COVID-19 infections in the south and west since then caused the positive leisure trend to slow again.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports

Historical avg

+1.7%

Avg return

Earnings day

+2.5%

Avg return

5 days after

-3.5%

Avg return

30 days after

53%

10 / 19 earnings

Positive

+36.2%

Q3 2025

Best reaction

-23.8%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.6%-4.1%-17.4%
Q4 2025+1.8%-1.8%+4.1%
Q3 2025+36.2%+33.2%+4.0%
Q1 2025-17.2%-4.0%-12.2%
Q4 2024-8.5%+5.4%-10.4%
Q3 2024+12.5%+20.2%+27.0%
Q2 2024-9.3%-11.0%-25.5%
Q1 2024-23.8%-21.6%-17.6%
Q4 2023+6.7%+2.8%-8.6%
Q3 2023-14.8%-16.7%-15.1%
Q2 2023-11.1%-8.2%-5.9%
Q1 2023+10.1%+7.0%+4.6%
Q4 2022+7.5%+3.6%+4.5%
Q3 2022-1.0%-5.3%-9.9%
Q2 2022+23.0%+18.2%+9.1%
Q1 2022-4.7%-11.0%-12.6%
Q4 2021+10.0%+13.1%+26.1%
Q3 2021+14.8%+29.8%-11.6%
Q2 2021+2.4%-2.7%+0.4%
Q1 2021
Q4 2020
Q3 2020
Q2 2020
Q1 2020
Q4 2019
Q3 2019
Q2 2019
Q1 2019
Q4 2018
Q3 2018
Q2 2018
Q1 2018
Q4 2017
Q3 2017
Q2 2017
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012
Q4 2011
Q3 2011
Q2 2011
Q1 2011
Q4 2010
Q3 2010
Q2 2010
Q1 2010

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