Hertz Global (HTZ 19.59, +3.92, +25.02%) has climbed after reporting
better than expected results. Today's advance has helped the stock reclaim its
50-day moving average (15.84), trimming year-to-date losses considerably.
The car rental agency reported a slimmer-than-expected second quarter loss of $0.19/share on a 7.4% year/year increase in revenue to $2.39 bln, which exceeded expectations.
The company reported a pre-tax loss of $86 mln, which was an improvement from a loss of $245 mln that was reported one year ago. Adjusted net loss narrowed to $16 mln from $52 mln one year ago.
U.S. rental revenue grew 7.2% to $1.63 bln while transaction days increased 6.9% to 38,747. Revenue per day edged up 0.3% year/year to $41.37 while revenue per unit grew 1.5% to $1,022. Utilization improved by 100 basis points to 81% thanks to more efficient fleet management. Vehicle capacity rose 3.0%. Net depreciation per unit fell 19.3% to $285 thanks to favorable residual values and improved fleet management.
International revenue rose 8.5% to $589 mln while transaction days ticked down 0.1% to 13,225. Revenue per day grew 2.2% to $44.61 while revenue per unit increased 1.5% to $1,050. The company sold its Brazil operation in August 2017. Excluding the impact of results from that operation, revenue per day was little changed. Vehicle utilization was little changed at 78%. Net depreciation per unit increased 3.7% to $199. Excluding the divested Brazil operation, depreciation expense increased 1.0%.
Other operations generated revenue of $172 mln, up 6.2% year/year. Segment pre-tax income grew 26.3% to $24 mln. The average vehicle count in the Donlen unit declined 9.0% to 187,600.
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