05/08/2024
Hertz said in its Q2 2024 earnings that demand is strong while rental pricing is starting to stabilize
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Hertz Q2 2024 revenue fell 3% y/y to $2.35 billion (analysts estimate: $2.48 billion) mainly due to prioritization of rate over volume while EPS came in at $-1.44 (analysts estimate: $-1.21) impacted by a rise in depreciation costs to $600 million from $197 million a year ago as residual values continued to fall.
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Hertz said demand during the quarter was strong while the rate of decline in pricing moderated quarter-over-quarter.
“During the quarter, we deliberately prioritized rate over volume. This is especially true in the Americas segment. Collectively, our revenue initiatives are showing early promise and global revenue per day (RPD), while down year-over-year as we guided, was up 5% sequentially. June RPD is marginally down year-over-year by 2%, an encouraging exit rate for the quarter and consistent with our expectations that year-over-year declines are narrowing,” CCO Sandeep Dube said in the earnings call.
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Looking ahead, Hertz expects strong results due to strong demand and stabilization in rental pricing.
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The firm said that it recently successfully negotiated with OEMs for cheaper vehicles a strategy that will lower depreciation per unit (DPU) of its fleet to $325 or lower from the current $600.
https://ir.hertz.com/news-releases/news-release-details/hertz-reports-second-quarter-2024-results