Herc Holdings Targets Higher Earnings From Rentals, Explores Sale Of Studio Entertainment Business
Portfolio Pulse from Anusuya Lahiri
Herc Holdings Inc (NYSE:HRI) reported a 6% year-on-year increase in Q4 FY23 sales to $831 million, missing analyst expectations. Adjusted EPS was $3.24, below the consensus of $3.47. Equipment rental revenue rose by 4.9% to $748 million. The company is exploring the sale of its Cinelease studio entertainment business, acquired in 2019. Herc projects 7-10% organic rental-revenue growth and 6-9% higher adjusted EBITDA for 2024, with an expected adjusted EBITDA of $1.55 billion to $1.60 billion. HRI shares closed up 2.00% at $154.68.
February 13, 2024 | 4:01 pm
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Herc Holdings reported lower-than-expected Q4 FY23 sales and EPS but anticipates 7-10% organic rental-revenue growth and 6-9% higher adjusted EBITDA for 2024. The company is also exploring the sale of its Cinelease studio entertainment business.
Despite missing Q4 sales and EPS estimates, Herc Holdings' positive outlook for 2024, including expected growth in rental revenue and adjusted EBITDA, alongside the potential sale of its Cinelease business, could drive investor optimism and positively impact its stock price in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100