Can Carl Icahn Save Hertz Global Holdings Inc (HTZ)? by Estimize
Hertz Global Holdings, Inc. (HTZ) Industrials – Road & Rails | Reports February 29, After Market Closes
Hertz Global Holdings 4Q Earnings – Key Takeaways
- The Estimize community is looking for EPS of $0.05 and revenue of $2.51 billion, right in line with Wall Street on the bottom-line, and around $8 million below on the top-line
- Competitive pressures from rival car rental companies and the emergence of ride sharing platforms have negatively impacted Hertz’s earnings
- Activist investors, Carl Icahn, has taken an interest in Hertz, purchasing a 14.3% stake in the company
- What are you expecting for HTZ? Get your estimate in here!
Hertz, is scheduled to report fourth quarter earnings February 29, after the market closes. The car rental company is coming off another disappointing quarter where it missed on both the top and bottom line. Ahead of its Q4 earnings, the Estimize community is looking for EPS of $0.07 and revenue of $2.53 billion, right in line with Wall Street on the bottom-line, and around $8 million below on the top-line. However, our Select Consensus, which more heavily weights historically accurate analysts and recent estimates, is $20 million below on revenues. The Estimize community has been bearish on Hertz’s profitability this quarter, pushing EPS estimates down 17% in the past three months. The company has historically beaten Wall Street on the bottom line 60% of the time while only besting the Estimize EPS consensus 25% of the time.
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Hertz Global has been struggling to perform for the past two years mostly due to competitive pressures. Just last week, Hertz’s stock took a beating following a lackluster fourth quarter earnings report from rival Avis Budget Group. Following the announcement, shares fell over 13%, having dropped a total of 45.9% since the start of 2016. Hertz has been unable to improve growth metrics as the car rental industry freefalls. Competition from ride sharing rivals like Lyft and Uber have adversely impacted Hertz’s revenue growth. Last quarter the company reported a 2% decline in U.S. car rental revenue, while international car rentals fell a resounding 14%, largely due to weak global economic conditions. High debt obligations and weaker operating cash flow also remains a top concern. Despite its misfortunes, activist investor Carl Icahn took an interest in Hertz, purchasing a 14.3% stake in the company with the hope of rectifying fleet management issues and cost inefficiencies. This year, the company also plans to spin off its equipment lease company into a separate publicly traded company.
Do you think HTZ can beat estimates? There is still time to get your estimate in here!