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3mo ago

Hertz Reports Q1 Revenue Miss but Highlights Progress in Fleet Strategy

First-quarter results show a $1.12 per-share adjusted loss and a 13% revenue decline, but vehicle depreciation improvements and liquidity position signal turnaround efforts are on track.

Cars are parked near Hertz car rental signage at John F. Kennedy International Airport in Queens, New York City, U.S., March 30, 2022. REUTERS/Andrew Kelly/File photo
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Overview

  • Hertz reported Q1 revenue of $1.81 billion, falling short of analyst expectations of $2 billion, with a 13% year-over-year decline driven by an 8% fleet capacity reduction.
  • The company posted an adjusted loss of $1.12 per share, exceeding the predicted loss of 97 cents per share.
  • Vehicle depreciation dropped 45% year-over-year, and more than 70% of Hertz's U.S. rental fleet is now 12 months old or newer, reflecting its fleet renewal strategy.
  • Hertz ended the quarter with $1.2 billion in corporate liquidity and reaffirmed its goal of achieving positive adjusted EBITDA by Q3 2025.
  • Despite a post-earnings stock dip, Hertz shares remain up 89% year-to-date, buoyed by Bill Ackman’s Pershing Square increasing its stake to 19.8%.