Herc Holdings Q2 Result Tops Consensus; Raises FY21 Guidance

Herc Holdings Inc (NYSE:HRI) reported second-quarter FY21 net revenue growth of 33.4% year-on-year to $490.9 million, beating the analyst consensus of $459.79 million.
Equipment rental revenue increased 36.8% Y/Y to $448.0 million.
Selling, general and administrative expenses rose 30.3% Y/Y to $74.0 million.
Adjusted EBITDA rose 39.0% Y/Y to $207.7 million, and Adjusted EBITDA margin increased 170 basis points Y/Y to 42.3%.
Cash and equivalents totaled $34.6 million as of June 30, 2021.
EPS of $1.57 beat the analyst consensus of $1.24.
"Tight supply of new equipment and steady demand from a number of key markets have provided a positive operating environment," said CEO Larry Silber.
The company said it is reviewing the capital allocation plan, with net leverage now below the target range of 2x to 3x.
Outlook: Herc raised FY21 adjusted EBITDA guidance to $840 million - $870 million from the prior view of $800 million - $840 million.
Price action: HRI shares are trading higher by 0.90% at $118.5 on the last check Thursday.

Benzinga