Send me real-time posts from this site at my email

Will U.S. Rental Car Segment Aid Hertz's (HTZ) Q2 Earnings?

Hertz Global Holdings, Inc HTZ is scheduled to report second-quarter 2019 earnings numbers on Aug 6, after the market closes.

Last reported quarter, the company delivered a positive surprise of 25%. The adjusted loss of 99 cents per share was narrower than the Zacks Consensus Estimate of a loss of $1.32. Moreover, the amount of loss decreased on a year-over-year basis. Solid pricing, volume growth and efficient fleet management benefited results. Quarterly revenues came in at $2.11 billion, missing the Zacks Consensus Estimate of $2.17 billion. However, the top line improved 2.1% on the back of an impressive performance of the U.S. Rental Car segment.

With the Zacks Consensus Estimate for second-quarter earnings being revised upward by 19 cents, the company seems to be well-placed to deliver an earnings beat this soon-to-be-reported quarter as well.

Why a Likely Positive Surprise?

Our proven model shows that Hertz is likely to beat on earnings in the upcoming quarterly results because it has the perfect combination of the following two key ingredients:

Earnings ESP: Hertz has an Earnings ESP of +120.23% as the Most Accurate Estimate is pegged at 49 cents, much higher than the Zacks Consensus Estimate of 22 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Hertz carries a Zacks Rank #3 (Hold). Notably, stocks with a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 alongside a positive Earnings ESP have significantly higher chances of beating estimates.

Conversely, the Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement, especially when the company is seeing negative estimate revisions.

Hertz Global Holdings, Inc Price and EPS Surprise


Hertz Global Holdings, Inc price-eps-surprise | Hertz Global Holdings, Inc Quote

Factors Likely at Play

As has been the case over the last few quarters, the U.S. Rental Car segment is anticipated to put up a good show in the second quarter too. With this segment generating maximum revenues, the company’s top line should benefit and thus lift overall results.

The company’s turnaround plan should further drive results in the quarter through volume expansion and a strong pricing.

On the flip side, significant investments in the turnaround plan have been partly affecting the company’s bottom-line growth and the second quarter is not likely to be any different. Additionally, declining revenues at the company’s International Rental Car segment might hurt the top line.

Other Stocks to Consider

Investors interested in the broader Transportation sector may also consider stocks like Frontline Ltd. FRO, Saia, Inc. SAIA and SkyWest, Inc. SKYW as these too possess the right combination of elements to come up with an earnings beat in their next releases.

Frontline has an Earnings ESP of +400.03% and a Zacks Rank of 3. The company is scheduled to report second-quarter earnings on Aug 30.
Saia has an Earnings ESP of +1.22% and is a Zacks #3 Ranked player. The company will announce second-quarter results on Jul 31.

SkyWest has an Earnings ESP of +3.25% and a Zacks Rank #2. The company is slated to release second-quarter earnings numbers on Jul 31. You can see the complete list of today’s Zacks #1 Rank stocks here.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SkyWest, Inc. (SKYW): Free Stock Analysis Report
Frontline Ltd. (FRO): Free Stock Analysis Report
Saia, Inc. (SAIA): Free Stock Analysis Report
Hertz Global Holdings, Inc (HTZ): Free Stock Analysis Report
To read this article on click here.

Welcome!!! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue