Herc Holdings Q1 Earnings Exceed Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy HRI?
Source: seekingalpha
- Strong Earnings Performance: Herc Holdings reported a Q1 non-GAAP EPS of $0.21, beating expectations by $0.42, indicating a significant improvement in profitability that boosts investor confidence.
- Robust Revenue Growth: The company achieved $1.14 billion in revenue for Q1, a 32.4% year-over-year increase, surpassing market expectations by $80 million, reflecting sustained demand in the equipment rental sector and further solidifying its market position.
- Increase in Rental Revenue: Equipment rental revenue reached $981 million, up 33%, demonstrating the company's growing competitiveness in the equipment rental market, which is crucial for future growth.
- Improved Cash Flow: Free cash flow was $94 million, nearly doubling from $49 million in the prior year, showcasing effective financial management that provides stronger support for future investments.
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Analyst Views on HRI
Wall Street analysts forecast HRI stock price to rise
7 Analyst Rating
5 Buy
1 Hold
1 Sell
Moderate Buy
Current: 122.450
Low
150.00
Averages
175.00
High
200.00
Current: 122.450
Low
150.00
Averages
175.00
High
200.00
About HRI
Herc Holdings Inc. is an equipment rental supplier. It operates through subsidiaries, including Herc Rentals Inc. In addition to its principal business of equipment rental, it sells used equipment and contractor supplies, such as construction consumables, tools, small equipment and safety supplies; provides repair, maintenance, equipment management services and safety training to certain of its customers; offer equipment re-rental services and provides on-site support to its customers; and provide ancillary services, such as equipment transport, rental protection, cleaning, refueling and labor. Its classic fleet includes aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction, and lighting equipment. Its ProSolutions offering includes industry-specific, solutions-based services in tandem with power generation, climate control, remediation and restoration, pumps, and trench shorting equipment as well as its ProContractor professional grade tools.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Herc Holdings Set to Announce Q1 Earnings
- Earnings Announcement Date: Herc Holdings (HRI) is scheduled to announce its Q1 earnings on April 28 before market open, with consensus EPS estimate at -$0.21 and revenue expected at $1.06 billion, reflecting a 23.1% year-over-year growth potential.
- Historical Performance Review: Over the past two years, HRI has beaten EPS estimates only 25% of the time while exceeding revenue estimates 63% of the time, indicating a relatively stable performance in revenue but ongoing challenges in profitability.
- Estimate Revision Dynamics: In the last three months, there have been no upward revisions to EPS estimates, with six downward adjustments, while revenue estimates also saw no upward revisions and four downward adjustments, suggesting market caution regarding the company's future profitability.
- Future Growth Targets: Herc Holdings has set a rental revenue growth target of 13%-17% for 2026, indicating a strategic intent to accelerate integration and specialty expansion, aimed at enhancing market competitiveness and achieving sustainable growth.
See More
Herc Holdings Q1 Earnings Exceed Expectations
- Strong Earnings Performance: Herc Holdings reported a Q1 non-GAAP EPS of $0.21, beating expectations by $0.42, indicating a significant improvement in profitability that boosts investor confidence.
- Robust Revenue Growth: The company achieved $1.14 billion in revenue for Q1, a 32.4% year-over-year increase, surpassing market expectations by $80 million, reflecting sustained demand in the equipment rental sector and further solidifying its market position.
- Increase in Rental Revenue: Equipment rental revenue reached $981 million, up 33%, demonstrating the company's growing competitiveness in the equipment rental market, which is crucial for future growth.
- Improved Cash Flow: Free cash flow was $94 million, nearly doubling from $49 million in the prior year, showcasing effective financial management that provides stronger support for future investments.
See More
Herc Holdings Earns Great Place To Work Certification for Third Consecutive Year
- Employee Satisfaction Boost: Herc Holdings has earned the 2026 Great Place To Work Certification in the U.S. and Canada, with 84% of employees rating the company as a great workplace, surpassing the average U.S. company by 27 percentage points, demonstrating the company's ongoing investment in employee experience.
- Growth and Cultural Commitment: The company expanded its workforce by over 25% in the past year, closely tied to its commitment to maintaining a positive workplace culture, reflecting its focus on employee career development and innovation.
- Leadership Recognition: CEO Larry Silber noted that this certification is based on direct employee feedback, emphasizing the company's commitment to fostering a strong workplace culture aimed at creating meaningful impacts for customers and communities.
- Business Scale and Service Diversity: Herc Holdings operates 602 rental locations across North America, with total revenues of approximately $4.4 billion in 2025, offering a wide range of equipment and services that help customers work more efficiently and safely, further solidifying its leadership position in the equipment rental industry.
See More
Herc Holdings Shares Surge 17.1% Following United Rentals Earnings
- Strong Earnings from Industry Leader: United Rentals reported a 7.2% year-over-year revenue increase to $3.99 billion in Q1, exceeding expectations and boosting investor confidence across the equipment rental sector, leading to a 17.1% surge in Herc Holdings' stock price.
- Improved Profitability: The adjusted earnings per share for United Rentals rose by 9.6% year-over-year, indicating robust demand in construction and industrial projects, which positively influences expectations for Herc Holdings' upcoming performance.
- Increased Market Volatility: Herc Holdings has experienced 38 moves greater than 5% in the past year, and this significant price jump suggests a notable shift in market perception regarding the company's future, reflecting investor optimism about industry recovery.
- Long-term Investment Returns: Despite a 17.5% decline in Herc Holdings' stock price year-to-date, investors who purchased $1,000 worth of shares five years ago would now see their investment grow to $1,254, highlighting the company's long-term investment potential and attractiveness.
See More
Herc Holdings to Release Q1 2026 Financial Results on April 28
- Earnings Release Schedule: Herc Holdings Inc. will announce its Q1 2026 financial results on April 28, 2026, before market open, followed by an investor conference call at 8:30 a.m. ET, where management will review results and may disclose material business and financial information not included in the press release.
- Conference Call Details: Investors can join the call by dialing the U.S. participant line at +1-800-715-9871 or using the international participant link, with Conference ID 3991721; participants are advised to dial in 10 to 15 minutes early to ensure connection.
- Company Background: Founded in 1965, Herc Holdings operates through Herc Rentals Inc., which has 602 rental locations across North America and reported approximately $4.4 billion in total revenue for 2025, offering a wide range of equipment and services aimed at enhancing customer efficiency and safety.
- Digital Platform Benefits: The ProControl by Herc Rentals™ digital platform integrates a seamless e-commerce experience with project and fleet management tools, leveraging telematics and real-time analytics to help customers optimize productivity across their operations.
See More
Hertz Stock Declines as TSA Travel Disruptions May Soon Come to an End
- Market Reaction: Shares of Hertz Global and Clear Secure fell on Friday following a significant executive order from President Donald Trump.
- Executive Order Impact: The order directs the Department of Homeland Security to compensate Transportation and Security Administration employees, indicating a shift in the dynamics affecting travel-related companies.
See More
Herc Holdings Set to Announce Q1 Earnings
- Earnings Announcement Date: Herc Holdings (HRI) is scheduled to announce its Q1 earnings on April 28 before market open, with consensus EPS estimate at -$0.21 and revenue expected at $1.06 billion, reflecting a 23.1% year-over-year growth potential.
- Historical Performance Review: Over the past two years, HRI has beaten EPS estimates only 25% of the time while exceeding revenue estimates 63% of the time, indicating a relatively stable performance in revenue but ongoing challenges in profitability.
- Estimate Revision Dynamics: In the last three months, there have been no upward revisions to EPS estimates, with six downward adjustments, while revenue estimates also saw no upward revisions and four downward adjustments, suggesting market caution regarding the company's future profitability.
- Future Growth Targets: Herc Holdings has set a rental revenue growth target of 13%-17% for 2026, indicating a strategic intent to accelerate integration and specialty expansion, aimed at enhancing market competitiveness and achieving sustainable growth.
See More
Herc Holdings Q1 Earnings Exceed Expectations
- Strong Earnings Performance: Herc Holdings reported a Q1 non-GAAP EPS of $0.21, beating expectations by $0.42, indicating a significant improvement in profitability that boosts investor confidence.
- Robust Revenue Growth: The company achieved $1.14 billion in revenue for Q1, a 32.4% year-over-year increase, surpassing market expectations by $80 million, reflecting sustained demand in the equipment rental sector and further solidifying its market position.
- Increase in Rental Revenue: Equipment rental revenue reached $981 million, up 33%, demonstrating the company's growing competitiveness in the equipment rental market, which is crucial for future growth.
- Improved Cash Flow: Free cash flow was $94 million, nearly doubling from $49 million in the prior year, showcasing effective financial management that provides stronger support for future investments.
See More
Herc Holdings Earns Great Place To Work Certification for Third Consecutive Year
- Employee Satisfaction Boost: Herc Holdings has earned the 2026 Great Place To Work Certification in the U.S. and Canada, with 84% of employees rating the company as a great workplace, surpassing the average U.S. company by 27 percentage points, demonstrating the company's ongoing investment in employee experience.
- Growth and Cultural Commitment: The company expanded its workforce by over 25% in the past year, closely tied to its commitment to maintaining a positive workplace culture, reflecting its focus on employee career development and innovation.
- Leadership Recognition: CEO Larry Silber noted that this certification is based on direct employee feedback, emphasizing the company's commitment to fostering a strong workplace culture aimed at creating meaningful impacts for customers and communities.
- Business Scale and Service Diversity: Herc Holdings operates 602 rental locations across North America, with total revenues of approximately $4.4 billion in 2025, offering a wide range of equipment and services that help customers work more efficiently and safely, further solidifying its leadership position in the equipment rental industry.
See More
Herc Holdings Shares Surge 17.1% Following United Rentals Earnings
- Strong Earnings from Industry Leader: United Rentals reported a 7.2% year-over-year revenue increase to $3.99 billion in Q1, exceeding expectations and boosting investor confidence across the equipment rental sector, leading to a 17.1% surge in Herc Holdings' stock price.
- Improved Profitability: The adjusted earnings per share for United Rentals rose by 9.6% year-over-year, indicating robust demand in construction and industrial projects, which positively influences expectations for Herc Holdings' upcoming performance.
- Increased Market Volatility: Herc Holdings has experienced 38 moves greater than 5% in the past year, and this significant price jump suggests a notable shift in market perception regarding the company's future, reflecting investor optimism about industry recovery.
- Long-term Investment Returns: Despite a 17.5% decline in Herc Holdings' stock price year-to-date, investors who purchased $1,000 worth of shares five years ago would now see their investment grow to $1,254, highlighting the company's long-term investment potential and attractiveness.
See More
Herc Holdings to Release Q1 2026 Financial Results on April 28
- Earnings Release Schedule: Herc Holdings Inc. will announce its Q1 2026 financial results on April 28, 2026, before market open, followed by an investor conference call at 8:30 a.m. ET, where management will review results and may disclose material business and financial information not included in the press release.
- Conference Call Details: Investors can join the call by dialing the U.S. participant line at +1-800-715-9871 or using the international participant link, with Conference ID 3991721; participants are advised to dial in 10 to 15 minutes early to ensure connection.
- Company Background: Founded in 1965, Herc Holdings operates through Herc Rentals Inc., which has 602 rental locations across North America and reported approximately $4.4 billion in total revenue for 2025, offering a wide range of equipment and services aimed at enhancing customer efficiency and safety.
- Digital Platform Benefits: The ProControl by Herc Rentals™ digital platform integrates a seamless e-commerce experience with project and fleet management tools, leveraging telematics and real-time analytics to help customers optimize productivity across their operations.
See More
Hertz Stock Declines as TSA Travel Disruptions May Soon Come to an End
- Market Reaction: Shares of Hertz Global and Clear Secure fell on Friday following a significant executive order from President Donald Trump.
- Executive Order Impact: The order directs the Department of Homeland Security to compensate Transportation and Security Administration employees, indicating a shift in the dynamics affecting travel-related companies.
See More
