Equipment rental company Herc Holdings (NYSE: HRI) will be announcing earnings results this Tuesday before market open. Here’s what to look for.
Herc beat analysts’ revenue expectations by 6.9% last quarter, reporting revenues of $1.00 billion, up 18.2% year on year. It was a slower quarter for the company, with full-year revenue guidance missing analysts’ expectations significantly and full-year EBITDA guidance missing analysts’ expectations significantly.
Is Herc a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Herc’s revenue to grow 33.3% year on year to $1.29 billion, improving from the 6.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.31 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 twice over the last two years.
Looking at Herc’s peers in the industrial distributors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Richardson Electronics delivered year-on-year revenue growth of 1.6%, beating analysts’ expectations by 6%, and United Rentals reported revenues up 5.9%, topping estimates by 1.6%. Richardson Electronics traded up 11.4% following the results while United Rentals was down 7.8%.
Read our full analysis of Richardson Electronics’s results here and United Rentals’s results here.
There has been positive sentiment among investors in the industrial distributors segment, with share prices up 3.7% on average over the last month. Herc is up 16% during the same time and is heading into earnings with an average analyst price target of $159.11 (compared to the current share price of $131.91).
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