Hertz Executive Flags Q4 Softness Amid Seasonal Leisure Lull, Government Shutdown Impact

• CEO Gil West said that the company was laying the groundwork for a diversified platform, which is also focused on refreshing its vehicle fleet.
• The company’s quarterly revenue came in at $2.48 billion, compared with expectations of $2.40 billion.
• Hertz reported third-quarter earnings per share of $0.42, compared with a loss of $4.34 per share a year ago. 

Hertz Global Holdings’ (HTZ) Chief Commercial Officer Sandeep Dube said on Tuesday that, looking ahead at the rest of the fourth quarter, there is some softness in the remaining months driven by seasonal leisure troughs combined with the impact of the government shutdown. 

“Over the next few quarters, we expect our efforts to gain further traction,” Dube said during a post-earnings call.  

Retail sentiment on Hertz remained unchanged in the ‘extremely bullish’ territory, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.

Hertz Q3 Results

Hertz stock jumped over 42% by Tuesday afternoon after the company reported third-quarter earnings per share (EPS) of $0.42, compared with a loss of $4.34 per share a year ago. This compares to analyst estimates of $0.07 per share, according to data from Fiscal AI.

The company’s quarterly revenue came in at $2.48 billion, compared with expectations of $2.40 billion.

Dube noted that the results in the late third quarter and October incorporate some of the short-term wins that have come from a critical review of the company’s commercial strategies and tactics.

CEO Gil West’s View

CEO Gil West said that the company was laying the groundwork for a diversified platform, which is also focused on refreshing its vehicle fleet.

“We've transformed our fleet from a headwind to a competitive advantage by continuing to hone our skills, sourcing vehicles optimally, deploying them effectively, and monetizing them strategically. Today, our U.S. fleet is newer and more aligned to customer preference than it's been in years,” West said.

Shares of Hertz have gained over 88% this year and have jumped nearly 133% in the last 12 months. 

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