Sixt:Quarterly Results/2023 Q4

Management Guidance

Based on management's guidance for the full year, we arrive at Q4 2023 guidance^[1];

Key items	Q4 2023^[2]	Y/Y	2024	Y/Y
Revenue	EUR 823 million	10.62%	EUR 3.77 million	4.1%
EBT	EUR 55 million	27.86%	EUR 476 million	2.6%
Net Income	EUR 34 million	42.51%
EPS	EUR 0.72	42.51%

Key items	Actual^[3]	Y/Y Growth	Analysts estimate^[4]
Revenue	$2.18 billion	7.3%	$2.15 billion
Adjusted EPS	-$1.36		-$1.02
Revenue per day (Pricing)	$ 58.09	-4%
Fleet utilization	78%	-1%
Transaction Days (in thousands)	37,602	12%
Americas segment revenue	$1.8 billion	6%
International segment revenue	$379 million	15%	$375.33
Americas RPD (pricing)	$59.01	-5%	$57.21
International pricing	$54.06	0%	$51.63
Fleet interest expense per unit per month	$91	65%

"Our business benefitted from solid demand and a stable rate environment in the fourth quarter," said Stephen Scherr, Hertz chair and chief executive officer^[5].
Stephen Scherr said in the earnings call that the rate of decline in pricing is decelerating^[6].
Stephen Scherr said they saw continued strong demand in January. "And I think that the back half of this year holds considerable promise for us in the context of sort of economic trends that are playing, which is lower inflation, lower interest rates, and a clear view that the American consumer, in particular, continues to consume travel as an experiential good that they're looking to partake in. And so we're just seeing very strong demand," he said.
Scherr said there is currently no incentive for competitors to lower pricing. "In terms of the broader sort of optimism or confidence on stability, candidly, I look at what you look at, which is I look at whether there is motive to sort of drive price down by any one of our competitors. I don't believe there is. There's no world in which lowering price brings more demand to the industry. It may split share, but share has been very stable across the majors, across a variety of markets. So there's not an embedded incentive."