Herc Earnings: What To Look For From HRI
Equipment rental company Herc Holdings (NYSE:HRI) will be reporting earnings tomorrow morning. Here’s what you need to know.
Herc beat analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $848 million, up 5.7% year on year. It was a slower quarter for the company, with a miss of analysts’ earnings estimates.
Is Herc a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Herc’s revenue to grow 2.6% year on year to $931.3 million, slowing from the 21.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.48 per share.
Analysts covering the company have generally 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 twice over the last two years.
Looking at Herc’s peers in the industrial distributors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Richardson Electronics delivered year-on-year revenue growth of 2.2%, beating analysts’ expectations by 8.7%, and Fastenal reported revenues up 3.5%, in line with consensus estimates. Richardson Electronics traded down 2.5% following the results while Fastenal was up 9.6%.
Read our full analysis of Richardson Electronics’s results here and Fastenal’s results here.
There has been positive sentiment among investors in the industrial distributors segment, with share prices up 3.3% on average over the last month. Herc is up 10.1% during the same time and is heading into earnings with an average analyst price target of $194.11 (compared to the current share price of $172.04).
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