Hertz Global Posts Solid Earnings (HTZ)

Hertz Global Holdings, Inc. (HTZ) reports Q3 earnings of $0.40 versus consensus of $0.37. Hertz Global Holdings, Inc. reports revenues of $2.2 billion versus consensus of $2.20 billion. Revenues increased 7.1% year over year. Worldwide car rental revenues increased 8.3% year over year with U.S. car rental revenues up 11.4%. On October 20, 2010, the company announced it had reaffirmed its full year 2010 revenue and Corporate EBITDA guidance, provided on April 26, 2010, in the range of $7.5 billion to $7.7 billion and $1.080 billion to $1.095 billion,(2) respectively. Mark P. Frissora, the company's Chairman and Chief Executive Officer, said, "In the third quarter, we increased adjusted pre-tax income year-over-year for the fifth consecutive quarter and doubled GAAP pre-tax income compared with the third quarter of 2009. These third quarter, year-over-year improvements are attributable to 11.4% revenue growth in U.S. car rental, our largest business, strong performance by our European car rental unit and efficiency improvements, including lower fleet costs. Also, HERC generated revenue growth in the third quarter for the first time in two years, and recorded a 33.7% year-over-year improvement in adjusted pre-tax income as well as a Corporate EBITDA margin of 40%.” Shares of HTZ are bid higher in the after-hours.