Hertz Global Holdings, Inc. (NASDAQ: $HTZ) is one of the biggest players in the global car rental industry. It is a globally recognized brand that operates under various brands, including Hertz, Dollar Rent A Car, Firefly Car Rental, and Thrifty Car Rental. Nearly 60 percent of Hertz’s revenue comes from its car rental business.
Hertz Global Holdings Earnings Report
Hertz released its Q3 earnings report on October 26, 2023. The company reported record revenue of $2.7 billion for the quarter. It said the rideshare business grew, with its premium Hertz brand performing the best. However, the company is still working to improve its margins.
The record revenue was made possible by strengthening demand well above the pre-pandemic level. It also recorded an increased volume of 16% year-over-year and a monthly revenue per unit of $1,596.
However, the company missed analysts’ targets for the quarter. Its reported revenue of $2.7 billion missed the mark by 0.24%, while the reported EPS of $0.70 was below the predicted $0.83, a surprise of – 15.56%.
The company also revealed that Tesla’s aggressive price cut was significantly affecting the resale value of its EV fleet. According to the report, the value has decreased by nearly a third. Additionally, it noted that repair expenses for the EV fleet were roughly double those of gasoline.
Hertz Stock Performance
Hertz Global stock is down 42.81% year-to-date. Even as the tourism industry roars back, the company has faced challenges with profitability. Additionally, it has seen numerous leadership changes in the past few months. The issues have raised questions regarding its future stability. Since September, when it was revealed that Alexandra Brooks would be the new Senior VP and CFO, the stock took a huge tumble.
Since the release of the latest earnings report, the stock performance of Hertz Global has improved. In the past five days, the stock is up 4.76%. However, it is still down 0.35% in the past month. Looking at trading volume, it stands at 1.37 million shares, well below its average of 3.72 million.
The stock is trading well below its 52-week high of $20.48 and just above its 52-week low of $8.12 at its current price of $8.59 at the close of trading on November 24, 2023. Its price is below the 50-day and 200-day moving averages of $10.67 and $15.42, respectively.
$HTZ Stock Forecast
Stock analysts give Hertz Global (HTZ) stock a strong buy rating. It shows they expect the stock to outperform the market in the next 12 months. The high price target for the stock is $20, and the lowest is $12. The average price target of $16.40 is an upside from the current price of $8.59.
Should You Buy $HTZ Stock?
Based on the latest earnings report, the leadership team is working hard to revamp the company. For instance, the CEO revealed a plan to reduce their margins. The measures include partnering with other EV companies to grow their EV fleet. The strong buy rating is accurate based on the ambitious plan and its performance in the last quarter.
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