HRI Earnings Prediction
The chart below shows how HRI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, HRI sees a +2.13% change in stock price 10 days leading up to the earnings, and a -0.33% change 10 days following the report. On the earnings day itself, the stock moves by -1.15%. This data can give you a slight idea of what to expect for the next quarter's release.
HRI Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
951.00M
14.30%
-1.45%
Gross Margin
35.65%
0.54%
-2.28%
Operating Margin
22.82%
6.09%
-3.83%
Net Margin
-4.84%
-144.24%
-138.29%
EPS
-1.62
-150.78%
-137.85%
No Data Available
HRI Earnings Analysis
Herc Holdings Inc Corporation (HRI.N) Earnings Conference Call
Positive
Equipment Rental Revenue Growth: Equipment rental revenue increased by 11.5% year over year in Q4, demonstrating strong market outperformance and effective execution of growth strategies.
Record Adjusted EBITDA Growth: Adjusted EBITDA for the fourth quarter reached a record $438 million, reflecting a 14.7% increase compared to the previous year, driven by higher rental revenue and effective cost management.
Expansion Strategy Overview: The company opened 23 greenfield branches and completed 9 acquisitions in 2024, adding 28 new locations, which are expected to enhance market share and revenue efficiencies.
Strong Cash Generation: Free cash flow for 2024 was reported at $314 million, indicating strong cash generation capabilities and financial health to support future growth initiatives.
Dividend Increase Announcement: A quarterly dividend of $0.665 was declared, representing a 5% increase in the annual dividend to $2.80 per share, highlighting the company's commitment to returning value to shareholders.
Negative
Net Income Impact Analysis: Net income for the full year was impacted by a loss on assets held for sale, specifically the Synolease business, which saw a slower than anticipated recovery in the studio entertainment industry, resulting in a significant valuation adjustment.
Decline in ROIC: Trailing twelve month ROIC for the core business declined 120 basis points to 10.1%, primarily due to inefficiencies associated with new acquisitions and a slowdown in local markets.
Disaster Recovery Performance Decline: Despite a 12.2% increase in rental revenue for the fourth quarter, contributions from hurricanes in Florida and North Carolina were below historical averages, indicating a weaker than expected performance in disaster recovery markets.
Fleet Expenditure Reduction: The company experienced a 12% reduction in new fleet expenditures compared to 2023, reflecting a cautious approach to capital investment amid a slowing local market.
Adjusted EBITDA Margin Impact: Adjusted EBITDA margin was impacted by the slowing local market and less efficient new acquisitions, despite a record adjusted EBITDA of $438 million in the fourth quarter.
HRI FAQs
How does HRI typically perform around its earnings report dates?
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HRI Earning Call Sentiment
Earnings call transcript: Herc Holdings Q4 2024 misses EPS, stock rises
HRI.N
-2.28%Positive
Despite positive indicators like record rental revenue and dividend increases, challenges such as competitive pressures, interest expenses, and local market weaknesses temper optimism. The Q&A revealed management's reluctance to provide specifics, indicating potential uncertainties. The market cap suggests moderate volatility, leading to a neutral prediction.
