Equipment rental company Herc Holdings (NYSE: HRI) will be announcing earnings results this Tuesday before the bell. Here’s what you need to know.
Herc beat analysts’ revenue expectations last quarter, reporting revenues of $1.14 billion, up 32.3% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but full-year revenue 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, the market is expecting Herc’s revenue to grow 14.6% year on year, slowing from the 18.2% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Herc has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Herc’s peers in the industrial distributors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Richardson Electronics delivered year-on-year revenue growth of 27.6%, beating analysts’ expectations by 19.6%, and United Rentals reported revenues up 11.8%, topping estimates by 4.9%. Richardson Electronics traded up 20.6% following the results while United Rentals was also up 10.1%.
Read our full analysis of Richardson Electronics’s results here and United Rentals’s results here.
Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the industrial distributors stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.5% on average over the last month. Herc is up 11.1% during the same time and is heading into earnings with an average analyst price target of $174.83 (compared to the current share price of $162.59).
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