Fool Checkup: Hertz Global Holdings Earnings

Seth Jayson, The Motley Fool
Updated

Hertz Global Holdings (NYS: HTZ) reported earnings on May 2. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Hertz Global Holdings met expectations on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue improved and GAAP loss per share dropped.


Margins grew across the board.

Revenue details
Hertz Global Holdings recorded revenue of $1.96 billion. The five analysts polled by S&P Capital IQ predicted a top line of $1.96 billion on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $1.78 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.05. The five earnings estimates compiled by S&P Capital IQ predicted $0.00 per share. GAAP EPS were -$0.13 for Q1 against -$0.32 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 17.3%, 210 basis points better than the prior-year quarter. Operating margin was 7.2%, 230 basis points better than the prior-year quarter. Net margin was -2.9%, 450 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.24 billion. On the bottom line, the average EPS estimate is $0.32.

Next year's average estimate for revenue is $8.96 billion. The average EPS estimate is $1.35.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 172 members out of 252 rating the stock outperform, and 80 members rating it underperform. Among 66 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 54 give Hertz Global Holdings a green thumbs-up, and 12 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hertz Global Holdings is buy, with an average price target of $20.60.

At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Hertz Global Holdings. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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