Hertz Global Holdings Q4 Adjusted Earnings Beat Street’s Estimates (HTZ)
Hertz Global Holdings Inc. (NYSE: HTZ) swung into a loss in its fiscal fourth quarter as it took a big one-time charge linked to the $2.6 billion acquisition of Dollar Thrifty; however, shares rallied as the quarterly revenue was bolstered by the recent purchase, spurring the rental company to provide upbeat guidance on fiscal 2013.
Hertz said that combining of Hertz and Dollar Thrifty fleets would help eliminating redundant operations and bring better purchasing power for the company. The Company expects synergies created by this deal would help save $300 million between fiscal 2013 and 2015, which is above Street’s estimate.
For the fiscal fourth quarter, the Company reported a net loss of $36.4 million or 9 cents a share compared to a net income of $52.1 million or 11 cents a share, in the year earlier quarter.
Stripping out onetime items, adjusted or non-GAAP earnings came at 33 cents a share, up from 24 cents in the year earlier period.
Revenue during the period leaped 15% to $2.32 billion.
Analysts’ consensus estimate was for earnings of 31 cents a share on revenue of $2.27 billion.
While revenue at its car-rental unit climbed 14%, it jumped 21% at equipments rental division.
Car rental revenue per transaction day at U.S. airports climbed 6 percent for Hertz and 2.6 percent for Dollar Thrifty in January, the Company said
The Company said that average number of cars that operated during the quarter rose 18% to 705,800. The number included the Dollar Thrifty acquisition deal which resulted in more fleets. The deal was closed in November.
For 2013, Hertz forecast adjusted earnings of $1.82 to $1.92 per share on revenue of $10.85 billion to $10.95 billion, which is above analysts’ consensus estimates for earnings of $1.78 a share on revenue of $10.79 billion.
HTZ shares have gained about 50% up after it announced its acquisition deal with the Dollar Thrifty, last August.