Car Rental Service Hertz Gets Boost From Americas, International RAC Performance

Hertz Global Holdings Inc HTZ reported third-quarter (Q3) 2023 revenue growth of 8% Y/Y to $2.703 billion, beating the consensus of $2.697 billion.

The car rental company reported an adjusted EPS of 70 cents, which missed the consensus of $0.76.

Americas RAC segment revenues increased 6% Y/Y to $2.17 billion, and International RAC increased 17% Y/Y to $531 million.

Transaction days rose 16% Y/Y, while the average fleet was up 11% Y/Y in Q1. 

Monthly revenue per unit fell by 4% Y/Y to $1,596, led by a 320-basis point improvement in utilization.

Average Vehicles increased by 11% Y/Y, and Average Rentable Vehicles increased by 12% for the quarter. Total RPD declined by 7% Y/Y to $62.46.

Adjusted Corporate EBITDA margin contracted to 13% from 25% as the Adjusted Corporate EBITDA declined 42% Y/Y to $359 million.

The company held cash and equivalents of $1.06 billion.

Operating cash flow was $851 million. 

Hertz "saw further growth" in its rideshare business, CEO Stephen Scherr said.

Price Action: HTZ shares are trading lower by 14.4% at $8.66 on the last check Thursday.