Hertz Global Q3 Results Top View, Backs Full Year Outlook - Update

(RTTNews) - Car and equipment rental firm Hertz Global Holdings Inc. (HTZ) Monday reported lower profit for the third quarter, hit by higher expenses, despite increased revenues. Adjusted results beat estimates. The company, further, backed its full year outlook.

Net income attributable to Hertz Global Holdings, Inc. and Subsidiaries' common stockholders fell to $214.7 million or $0.47 per share from $242.9 million or $0.55 per share a year ago.

Adjusted net income was $337.7 million or $0.73 per share while it totaled $280.3 million or $0.63 per share in the prior year.

On average, 9 analysts polled by Thomson Reuters expected the company to report earnings of $0.71 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter climbed to $3.07 billion from last year's $2.52 billion. Analysts had a consensus revenue estimate of $3.06 billion for the quarter.

U.S. car rental revenues increased 32.6 percent to $1.8 billion on stronger pricing despite excess fleet due to lower-than-anticipated volume.

Within the business, The company achieved record transaction days for the quarter due to the acquisition of Dollar Thrifty, partially offset by the Advantage divestiture. U.S. off-airport total revenues for the third quarter increased 11.1 percent and U.S car rental total RPD advanced 2 percent.

International car rental revenues rose 9.7 percent to $768.6 million and the company achieved record transaction days due to strong performance across Europe. International rental car total RPD increased 2.9 percent.

Worldwide equipment rental revenues climbed 10.7 percent to $401.8 million, driven by stronger equipment rental volumes and higher pricing. Volume increased on strong industrial and improving construction performance.

Mark Frissora, CEO, said, "Our ninth consecutive quarter of record adjusted pre-tax income, which increased 22.3% year-over-year in the third quarter, was driven by solid revenue growth in four key businesses: U.S. off-airport car rental, Dollar Thrifty, Donlen and worldwide equipment rental."

Total expenses increased to $2.741 billion from $2.147 billion in the previous year. The company's board of directors approved a share repurchase program to purchase up to $300 million of common stock.

Looking ahead to the year, Hertz still sees adjusted earnings per share in the range of $1.68 - $1.78. The company reaffirmed its worldwide revenue outlook of $10.8 billion to $10.9 billion.

Analysts expect the company to report earnings of $1.74 per share on revenues of $10.81 billion for fiscal 2013.

The stock closed up 4.6 percent on Monday at $23.80 and dropped 2.7 percent in the extended trade.