Herc Jumps 15% as Q3 EPS Nearly Doubles Estimates, Full-Year Outlook Raised Again
HRI sits 66% above its 52-week low of $88.45.
Summary
Adjusted EPS came in at $3.91 versus a $2.92 consensus — a 99-cent beat — and revenue rose 4.6% to a record $1.364 billion, $10 million ahead of expectations. Net income jumped to $104 million from $30 million a year earlier. The stock is up 15% to a four-week high in Tuesday's session, the first trading reaction to numbers released this morning. Rental revenue grew 12% while average fleet size rose only 1.7%, and dollar utilization climbed to 43.5% from 39.9% — they are squeezing more revenue out of the same equipment, and adjusted EBITDA margin widened 190 basis points to 44.2%. Management raised full-year guidance for the second time this year: rental revenue to $4.475-$4.550 billion, adjusted EBITDA to $2.10-$2.15 billion, and net rental capex to $1.0-$1.1 billion from $850-$950 million, with gross capex up to $1.45-$1.60 billion. The capex hike is the one item to weigh — more fleet spending supports the large-project pipeline but consumes cash. This lands a day after the company confirmed Aaron Birnbaum takes over as CEO on Jan. 1, 2027, succeeding Larry Silber.
At the time of this announcement, HRI was trading at $146.53 on NYSE in the Trade & Services sector, with a market capitalization of approximately $4.9B. The 52-week trading range was $88.45 to $188.35. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Seeking Alpha.