HTZ Earnings Prediction
The chart below shows how HTZ performed 10 days before and after its earnings report, based on data from the past quarters. Typically, HTZ sees a +4.33% change in stock price 10 days leading up to the earnings, and a -3.65% change 10 days following the report. On the earnings day itself, the stock moves by -0.71%. This data can give you a slight idea of what to expect for the next quarter's release.
HTZ Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
2.04B
-6.59%
-20.81%
Gross Margin
-3.68%
-0.81%
-170.23%
Operating Margin
-14.80%
-1.46%
546.29%
Net Margin
-23.48%
47.39%
-54.59%
EPS
-1.57
-37.72%
-63.82%
No Data Available
HTZ Earnings Analysis
Hertz Global Holdings Inc Corporation (HTZ.O) Earnings Conference Call
Positive
Strategic Transformation Initiatives: Hertz has implemented fundamental changes to set the company up for ongoing success, with a focus on transforming into an industry leader.
Leadership Team Enhancement: The company has strengthened its leadership team with experienced professionals from various industries, enhancing operational excellence and transformation capabilities.
Fleet Age Improvement: Over 60% of Hertz's fleet is now comprised of vehicles that are one year old or less, indicating a successful fleet rotation strategy.
Vehicle Sales Surge: In Q4, Hertz sold 100,000 vehicles, significantly up from just over 30,000 in Q4 2023, demonstrating effective fleet management and alignment with seasonal demand.
Utilization Improvement Analysis: Year-over-year utilization improved by 270 basis points from Q3 to Q4, showcasing operational improvements and better asset management.
Data Utilization Enhancement: Hertz's partnerships with Palantir and GolRack Group are enhancing data utilization and operational efficiency, contributing to better fleet management.
Customer Satisfaction Improvement: Customer satisfaction has improved, as evidenced by strong gains in Net Promoter Scores, indicating a positive shift in customer experience and service recovery efforts.
Loyalty Enrollment Growth: Loyalty enrollments grew 18% year-over-year in Q4, reflecting a successful strategy in driving durable demand and customer loyalty.
Capital Raise for Liquidity: The company raised $500 million through a capital raise to enhance liquidity and support operational plans, indicating strong financial management and flexibility.
Depreciation Cost Management: Hertz expects to exit 2025 with a target of below $300 per month per unit in depreciation, reflecting improved cost management and operational efficiency.
Negative
Earnings Miss Reported: Hertz Global Holdings, Inc. missed earnings expectations with a reported EPS of $-1.18, compared to expectations of $-0.72.
Q4 Revenue Decline: Revenue for Q4 was just over $2 billion, which is about 7% lower year-over-year, largely driven by a decrease in volume.
Quarterly EBITDA Loss: The adjusted EBITDA for the quarter was a loss of $357 million, indicating significant financial challenges.
Operating Expenses Challenge: Despite improvements in fleet utilization, the company faced headwinds from insurance costs, which increased the operating expenses significantly in Q4.
Vehicle Sale Loss Impact: The company recognized a book value loss on the sale of vehicles due to MMR values dropping below forecasted levels, impacting overall financial performance.
Seasonal EBITDA Loss: The first quarter of 2025 is expected to show a seasonal EBITDA loss, which is exacerbated by inflated depreciation associated with older vehicles.
Litigation Uncertainty Concerns: Pending litigation remains a concern with undefined timing of resolution and outcome, adding uncertainty to the company's future.
Liquidity Challenges Ahead: The company anticipates a low point of liquidity around the middle of the year, indicating potential cash flow challenges.
HTZ FAQs
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HTZ Earning Call Sentiment
Hertz Global Holdings, Inc. (NASDAQ:HTZ) Q4 2024 Earnings Call Transcript
HTZ.O
3.43%Positive
The earnings call reveals several negative factors: an EPS miss, decreased revenue, and an adjusted EBITDA loss. There are also risks from insurance costs, pending litigation, and economic factors affecting liquidity. Despite strong liquidity and fleet utilization improvements, the lack of a shareholder return plan and the absence of guidance on cash burn and cost headwinds contribute to a negative sentiment. The company's market cap suggests a moderate reaction, leading to a prediction of a negative stock price movement between -2% to -8% over the next two weeks.
