Equipment rental company Herc Holdings (NYSE: HRI) will be reporting earnings this Tuesday before market open. Here’s what investors should know.
Herc missed analysts’ revenue expectations last quarter, reporting revenues of $1.21 billion, up 27.1% year on year. It was a disappointing quarter for the company, with full-year revenue guidance missing analysts’ expectations significantly and full-year EBITDA 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 25.7% year on year, improving from the 7.1% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to 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 Q1 results, giving us a hint as to what we can expect. Richardson Electronics delivered year-on-year revenue growth of 3.1%, beating analysts’ expectations by 4.4%, and United Rentals reported revenues up 7.2%, topping estimates by 2.4%. Richardson Electronics traded up 22.7% following the results while United Rentals was also up 22.9%.
Read our full analysis of Richardson Electronics’s results here and United Rentals’s results here.
There has been positive sentiment among investors in the industrial distributors segment, with share prices up 15% on average over the last month. Herc is up 23.8% during the same time and is heading into earnings with an average analyst price target of $162.30 (compared to the current share price of $119.91).
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