A Look Ahead: Herc Hldgs's Earnings Forecast

Herc Hldgs HRI is set to give its latest quarterly earnings report on Tuesday, 2024-10-22. Here's what investors need to know before the announcement.

Analysts estimate that Herc Hldgs will report an earnings per share (EPS) of $4.58.

The market awaits Herc Hldgs's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Overview of Past Earnings

Last quarter the company missed EPS by $0.31, which was followed by a 4.84% drop in the share price the next day.

Here's a look at Herc Hldgs's past performance and the resulting price change:

Market Performance of Herc Hldgs's Stock

Shares of Herc Hldgs were trading at $172.04 as of October 18. Over the last 52-week period, shares are up 59.77%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Insights on Herc Hldgs

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Herc Hldgs.

Analysts have given Herc Hldgs a total of 2 ratings, with the consensus rating being Neutral. The average one-year price target is $177.5, indicating a potential 3.17% upside.

Analyzing Analyst Ratings Among Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of Air Lease, GATX and MSC Industrial Direct Co, three key industry players, offering insights into their relative performance expectations and market positioning.

• The consensus among analysts is an Outperform trajectory for Air Lease, with an average 1-year price target of $53.0, indicating a potential 69.19% downside.
• The consensus outlook from analysts is an Neutral trajectory for GATX, with an average 1-year price target of $140.0, indicating a potential 18.62% downside.
• The consensus among analysts is an Neutral trajectory for MSC Industrial Direct Co, with an average 1-year price target of $91.0, indicating a potential 47.11% downside.

Analysis Summary for Peers

The peer analysis summary presents essential metrics for Air Lease, GATX and MSC Industrial Direct Co, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

Herc Hldgs ranks in the middle for Consensus rating among its peers. It is at the bottom for Revenue Growth. For Gross Profit, it is at the top among its peers. In terms of Return on Equity, Herc Hldgs is in the middle compared to its peers.

Unveiling the Story Behind Herc Hldgs

Herc Holdings is an equipment rental company that was spun out of Hertz Global in 2016. It is currently the third-largest equipment rental company (4% market share) in North America, after United Rentals and Sunbelt Rentals, with a fleet size of $6.4 billion. It serves commercial and residential construction customers, the environmental sector, industrial entities, and entertainment production companies. During much of its 50-year-plus history, the company has rented equipment such as aerial lifts to its customers for intermittent use. More recently, it has broadened its catalog to include a host of specialty items. Separately, Herc Holdings' strategy now incorporates long-term rentals to industrial customers where Herc maintains its own staff at the customer site.

Financial Insights: Herc Hldgs

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining Herc Hldgs's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 5.74% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Herc Hldgs's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 8.25% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Herc Hldgs's ROE stands out, surpassing industry averages. With an impressive ROE of 5.24%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Herc Hldgs's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.95%, the company may face hurdles in achieving optimal financial returns.

Debt Management: With a high debt-to-equity ratio of 3.53, Herc Hldgs faces challenges in effectively managing its debt levels, indicating potential financial strain.

To track all earnings releases for Herc Hldgs visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.