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Hertz beats profit estimates on strong rental car demand

Published 07/27/2023, 09:06 AM
Updated 07/27/2023, 09:12 AM
© Reuters. Hertz car rental logo is seen in this illustration taken June 27, 2022. REUTERS/Dado Ruvic/Illustration
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(Reuters) - Hertz Global Holdings Inc (OTC:HTZGQ) reported a better-than-expected quarterly profit on Thursday, as the car rental company benefited from a resilient travel boom.

The rental services, tied closely to airline traffic and hotel bookings, has seen a robust rebound due to people's pent-up desire to travel after the easing of coronavirus restrictions.

"Results for the second quarter were strong, reflecting continued high demand for our services and elevated levels of fleet utilization," Hertz CEO Stephen Scherr said in a statement.

Upbeat earnings by hotel operators in the last few quarters further underscores the strength in consumers spending for travel.

However, Hertz's total expenses rose 86% to $2.28 billion in the quarter through June.

© Reuters. Hertz car rental logo is seen in this illustration taken June 27, 2022. REUTERS/Dado Ruvic/Illustration

The company, which operates the Hertz, Dollar and Thrifty vehicle rental brands, posted an adjusted profit of 72 cents per share, down from $1.22 per share a year earlier. Analysts were expecting 64 cents per share, according to Refinitiv data.

Total revenues rose 4% to $2.44 billion, slightly short of estimates of $2.45 billion.

 

 

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