Examining the Future: Herc Hldgs's Earnings Outlook

Herc Hldgs HRI is gearing up to announce its quarterly earnings on Tuesday, 2025-04-22. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Herc Hldgs will report an earnings per share (EPS) of $2.24.

Anticipation surrounds Herc Hldgs's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Past Earnings Performance

In the previous earnings release, the company missed EPS by $0.36, leading to a 2.4% increase in the share price the following trading session.

Here's a look at Herc Hldgs's past performance and the resulting price change:

Market Performance of Herc Hldgs's Stock

Shares of Herc Hldgs were trading at $117.66 as of April 18. Over the last 52-week period, shares are down 28.27%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Analysts' Take on Herc Hldgs

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Herc Hldgs.

Analysts have given Herc Hldgs a total of 4 ratings, with the consensus rating being Buy. The average one-year price target is $161.5, indicating a potential 37.26% upside.

Comparing Ratings with Competitors

The following analysis focuses on the analyst ratings and average 1-year price targets of Boise Cascade, GMS and Rush Enterprises, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for Boise Cascade, with an average 1-year price target of $131.2, suggesting a potential 11.51% upside.
• Analysts currently favor an Neutral trajectory for GMS, with an average 1-year price target of $78.17, suggesting a potential 33.56% downside.
• Analysts currently favor an Outperform trajectory for Rush Enterprises, with an average 1-year price target of $69.0, suggesting a potential 41.36% downside.

Peers Comparative Analysis Summary

Within the peer analysis summary, vital metrics for Boise Cascade, GMS and Rush Enterprises are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Herc Holdings ranks at the bottom for Revenue Growth among its peers. It also ranks at the bottom for Gross Profit. However, it ranks at the top for Return on Equity.

All You Need to Know About Herc Hldgs

Herc Holdings Inc is an equipment rental company that was spun out of Hertz Global in 2016. It is currently the equipment rental company (4% market share) in North America, after United Rentals and Sunbelt Rentals, with a fleet size of $6.4 billion. It serves commercial and residential construction customers, the environmental sector, industrial entities, and entertainment production companies. During much of its 50-year-plus history, the company has rented equipment such as aerial lifts to its customers for intermittent use. More recently, it has broadened its catalog to include a host of specialty items. Separately, Herc Holdings' prepares now to incorporate long-term rentals to industrial customers where Herc maintains its own staff at the customer site.

Herc Hldgs: Delving into Financials

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Challenges: Herc Hldgs's revenue growth over 3 months faced difficulties. As of 31 December, 2024, the company experienced a decline of approximately -9.01%. This indicates a decrease in top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Herc Hldgs's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -6.08%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Herc Hldgs's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -3.2%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Herc Hldgs's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -0.57%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Herc Hldgs's debt-to-equity ratio surpasses industry norms, standing at 3.63. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

To track all earnings releases for Herc Hldgs visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.