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Hertz stock falls 7% on wider-than-expected Q2 loss, revenue miss

Published 01/08/2024, 13:27
Updated 01/08/2024, 13:28
Hertz stock falls 7% on wider-than-expected Q2 loss, revenue miss
HTZ
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Hertz Global Holdings (OTC:HTZGQ), Inc. (HTZ) reported its second-quarter 2024 financial results on August 1, 2024.

HTZ reported revenue of $2.4 billion for the second quarter, slightly below the analyst consensus estimate of $2.47 billion. This represents a 3% year-over-year increase from the $2.437 billion reported in Q2 2023.

Shares were down 7% in Thursday's premarket session following the results.

The company reported an adjusted net loss of $440 million for the quarter, compared to an adjusted net income of $227 million in the prior-year quarter. This marks a significant decrease in profitability.

HTZ recorded an adjusted diluted loss per share of $1.44 for the second quarter, falling short of the analyst estimate of a loss of $1.02. In Q2 2023, the company had reported an adjusted diluted EPS of $0.72.

Adjusted Corporate EBITDA came in at $460 million, a sharp decline from the $347 million reported in the same quarter last year.

Total RPD, a measure of average daily revenue, increased by 3% year-over-year to $59.65 in Q22024, compared to $61.62 in Q2 2023.

Total RPU Per Month, indicating revenue generated per vehicle, declined by 5% to $1,446 in the second quarter, compared to $1,527 in the previous year's corresponding quarter.

Vehicle utilization, which measures the efficiency of the rental fleet, improved from 82% in Q2 2023 to 80% in Q22024.

DPU, representing the average depreciation expense per vehicle per month, increased notably from $197 in Q22023 to $600 in Q22024.

Gil West, Hertz CEO, highlighted the company's progress in fleet optimization and cost management initiatives. He mentioned that Hertz is focused on driving enhanced profitability through operational excellence, customer service improvements, and strategic fleet management.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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