Hertz Global (HTZ 14.80, +0.52) has climbed 3.6% in pre-market after missing earnings expectations on in-line revenue. Although the stock is up today, the advance comes after yesterday's 6.3% drop in reaction to disappointing results from peer Avis Budget (CAR 29.95, -0.14).
Hertz reported a below-consensus second quarter loss of $0.63 per share on a 2.0% year-over-year decrease in revenue to $2.22 billion, which matched expectations.
Total U.S. revenue declined 4.0% to $1.52 billion with transaction days falling 3.0% to 36,233, partly due to replacement rentals from unusually high customer vehicle recall activity. Pricing declined 2.0% to $41.26. Average fleet was reduced by 1.0%. The company met its goal of reducing its mix of compact cars to 16.0% of the total fleet from 21.0% a year ago.
International revenue increased 1.0% to $543.00 million while transaction days grew 6.0% to 13,235. Pricing declined 1.0% to $39.29 while average fleet grew 4.0% to 186,100.
Hoping to strengthen future results, the company modified its U.S. fleet, redesigned 37 airport locations for Ultimate Choice program users, and updated its financial and revenue management systems.
The company expects some improvement during the second half of the year, noting that July total revenue per day is expected to have increased 3.0%. Transaction days are expected to be down 4.0% as the company targeted higher-quality revenue. Early August results suggest that July trends were maintained, but September is expected to be weaker due to seasonal factors.