Equipment rental company Herc Holdings (NYSE:HRI) will be reporting results tomorrow before the bell. Here’s what you need to know.
Herc beat analysts’ revenue expectations by 2% last quarter, reporting revenues of $965 million, up 6.3% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ Equipment rentals revenue estimates and full-year EBITDA guidance slightly topping analysts’ expectations.
Is Herc a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Herc’s revenue to grow 11.7% year on year to $928.1 million, improving from the 5.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.94 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Herc has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Herc’s peers in the specialty equipment distributors segment, some have already reported their Q4 results, giving us a hint as to what we can expect. United Rentals delivered year-on-year revenue growth of 9.8%, beating analysts’ expectations by 3.9%, and SiteOne reported revenues up 5%, topping estimates by 1.3%. United Rentals traded up 2% following the results.
Read our full analysis of United Rentals’s results here and SiteOne’s results here.
Investors in the specialty equipment distributors segment have had steady hands going into earnings, with share prices flat over the last month. Herc is up 2.9% during the same time and is heading into earnings with an average analyst price target of $248.67 (compared to the current share price of $207).
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