NYSE$HTZ

Hertz Global Holdings Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Hertz reported strong second quarter results driven by high demand and fleet utilization

Hertz Global Holdings, Inc. reported strong second quarter 2023 results with total revenues of $2.4 billion and a net income of $139 million. The company's focus on asset returns and investments in technology and electrification contributed to the positive performance.

  • Total revenues reached $2.4 billion.
  • GAAP net income was $139 million, representing a 6% margin, or $0.44 per diluted share.
  • Adjusted Corporate EBITDA was $347 million, with a 14% margin.
  • The company's liquidity position was $1.4 billion at June 30, 2023, which includes $682 million in unrestricted cash.

Headline financials

Total Revenue

$2.44B

Previous: $2.34B+4.0%
EPS (adj)

$0.72

Previous: $1.22-41.0%
Vehicle utilization

82.0%

Previous: 79.0%+3.8%
Total RPD

$61.14

Previous: $66.66-8.3%
Total RPU per month

$1.52K

Previous: $1.61K-5.6%
Depreciation per unit

$195.00

Previous: $71.00+174.6%
Capital Expenditures

-$123M

Previous: -$59M-108.5%
Free Cash Flow

$16M

Previous: $881M-98.2%
Net Income

$139M

Previous: $940M-85.2%
Operating Income

$569M

Previous: $796M-28.5%
Gross Profit

$761M

Previous: $1.15B-33.5%
Cash & Equivalents

$682M

Previous: $1.04B-34.5%
Total Assets

$26.1B

Previous: $22.1B+18.3%

Revenue & EPS history

Hertz · Revenue · Quarterly

$2.44B

Q2 2023+4%vs Q2 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

The report contains forward-looking statements regarding the company's future operations, strategies, and potential risks, cautioning that actual results could differ materially due to various factors.

Tailwinds

  • The Company's ability to purchase adequate supplies of competitively priced vehicles at a reasonable cost in order to efficiently service rental demand, including as a result of disruptions in the global supply chain
  • The Company's ability to attract and retain effective frontline employees, senior management and other key employees
  • Levels of travel demand, particularly business and leisure travel in the U.S. and in global markets
  • The Company's ability to accurately estimate future levels of rental activity and adjust the number and mix of vehicles used in its rental operations accordingly
  • The Company's ability to implement its business strategy or strategic transactions, including its ability to implement plans to support a large-scale electric vehicle fleet, execute its rideshare strategy and to play a central role in the modern mobility ecosystem

Headwinds

  • Significant changes in the competitive environment and the effect of competition in the Company's markets on rental volume and pricing
  • Occurrences that disrupt rental activity during the Company's peak periods particularly in critical geographies
  • The mix of vehicles in the Company's fleet, including but not limited to program and non-program vehicles, which can lead to increased exposure to residual risk upon disposition
  • Increases in vehicle holding periods, which may result in additional maintenance costs and lower customer satisfaction
  • Financial instability of the manufacturers of the Company's vehicles, which could impact their ability to fulfill obligations under repurchase or guaranteed depreciation programs

Historical earnings impact

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

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+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

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