Herc Holdings Reports Mixed Q2 Results; Plans To Utilize 2014 Share Repurchase Authorization

Herc Holdings Inc HRI reported second-quarter FY22 sales growth of 30.5% year-on-year, to $640.40 million, beating the consensus of $630.14 million.
Equipment rental revenue increased 35.1% Y/Y to $605.4 million.
Selling, general and administrative expenses rose 31.1% Y/Y to $97.0 million.
Pricing increased 5.5% compared to 2021.
Adjusted EBITDA rose 36.8% Y/Y to $284.2 million, and the adjusted EBITDA margin increased 210 basis points Y/Y to 44.4%.
Cash and equivalents totaled $52.1 million as of June 30, 2022.
Adjusted EPS of $2.47 missed the analyst consensus of $2.64.
Buyback: HRI revealed its plan to repurchase shares under the 2014 Share Repurchase Program, under which $395.9 million remained available as of June 30, 2022.
Outlook: Herc narrowed its FY22 adjusted EBITDA outlook to $1.195 billion - $1.245 billion (prior view $1.175 billion - $1.245 billion).
Price Action: HRI shares are trading lower by 0.89% at $101.40 on the last check Thursday.

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