Shares of Hertz Global Holdings Inc. (HTZ) experienced a minor setback in premarket trading on Thursday, with a 3.3% decline toward a record low. The leading car rental company exceeded profit expectations, while revenue remained steady and margins held steady.
Robust Earnings and Share Figures
In the year-ago period, Hertz reported a net income of $577 million, or $1.33 per share. However, this year’s figures showed improvement, with net income amounting to $629 million, or 92 cents per share. The decrease in the number of shares used for calculating per-share results contributed to this positive outcome.
Meeting Revenue Expectations
Hertz’s impressive financial results also extended to its revenue growth. Recording an increase of 8.3%, revenue reached a record high of $2.70 billion. This achievement aligned precisely with the FactSet consensus, signifying the company’s ability to navigate challenging market conditions.
The surge in revenue can be attributed to the sustained demand in leisure and rideshare channels, resulting in pricing levels that surpass those seen before the pandemic.
Steady Margins and Abysmal Stock Performance
Despite its positive financial performance, Hertz experienced a setback in stock value. As it prepared to open at its lowest price since commencing trading on July 1, 2021, following its emergence from bankruptcy, the stock plunged by 43.6% over the past three months through Wednesday.
In comparison, its competitor Avis Budget Group Inc. and the S&P 500 displayed milder declines, with drops of 25.6% and 8.3%, respectively.
Maintaining resilience amidst turbulent market conditions, Hertz Global Holdings Inc. exemplifies an ability to thrive despite revenue challenges.