I am positive on Sixt Q3 earnings. My expectations are guestimates based on the current demand and pricing trends as well the fact that Q3 is usually a strong quarter for Sixt. However, I am also a bit cautious due to the current high interest and depreciation costs.
Here are my bullish and bearish arguements;
Bullish;
- Its competitor, Hertz, reported strong demand and stable rental pricing during the quarter.
- Airline companies also witnessed strong demand during the quarter.
- Almost half of Sixt’s annual earnings is usually generated in the third-quarter.
Bearish;
- High interest rates impacts its fleet growth while high depreciation costs lower its vehicle resale value.
- Used car prices in U.S and Europe are still down year-over-year but starting to stabilize.
- German economy is still weak.
- Weak customer satisfaction in U.S may affect demand for Sixt’s rental vehicles.