Shares of Herc Holdings showed positive movement in the after-hours market on Monday following the company’s announcement regarding its pursuit of strategic alternatives for Cinelease, a business specializing in studio management, lighting, and grip-equipment rentals.
The company’s stock experienced an increase of 5%, reaching $112.57 in trading. Earlier in the day, the shares saw a decline of less than 1%, closing at $107.21.
Unfortunately, the stock has faced a substantial loss of over 18% since the beginning of the year.
Larry Silber, Herc Holdings’ president and CEO, explained that the decision to explore alternatives for Cinelease came as a result of changing dynamics within the film and studio entertainment industry. These changes have created a demand for significant capital investment in studios, leading to the need for Herc Holdings to reassess its strategy in this area.
In addition to this announcement, the company also reported its financial results for the third quarter. During this period, Herc boasted earnings per share of $3.96 on revenue amounting to $908 million. Comparatively, in the same period last year, EPS stood at $3.36, with revenue totaling $745.1 million.