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Sixt:Quarterly Results/2024 Q2: Difference between revisions
→Competitor Earnings Expectations and Results
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===== Pricing ===== | ===== Pricing ===== | ||
* CCO Sandeep Dube said in the earnings call<ref>https://seekingalpha.com/article/4709242-hertz-global-holdings-inc-htz-q2-2024-earnings-call-transcript</ref> that during the quarter they prioritized rate over demand. | * CCO Sandeep Dube said in the earnings call<ref>https://seekingalpha.com/article/4709242-hertz-global-holdings-inc-htz-q2-2024-earnings-call-transcript</ref> that during the quarter they prioritized rate over demand. | ||
* '''The company said it prioritized rate over volume during the quarter and that they saw signs that y/y decline in pricing is narrowing.''' "During the quarter, we deliberately prioritized rate over volume. This is especially true in the Americas segment. Collectively, our revenue initiatives are showing early promise and global RPD, while down year-over-year as we guided, was up 5% sequentially. June RPD is marginally down year-over-year by 2%, an encouraging exit rate for the quarter and consistent with our expectations that year-over-year declines are narrowing," Sandeep Dube said. | * '''The company said it prioritized rate over volume during the quarter and that they saw signs that y/y decline in pricing is narrowing.''' "During the quarter, we deliberately prioritized rate over volume. This is especially true in the Americas segment. Collectively, our revenue initiatives are showing early promise and global RPD, while down year-over-year as we guided, was up 5% sequentially. June revenue per day (RPD) is marginally down year-over-year by 2%, an encouraging exit rate for the quarter and consistent with our expectations that year-over-year declines are narrowing," Sandeep Dube said. | ||
* '''Scott said they expect RPD to be flat or up 1% in Q3'''. " For Q3, demand is strong, but we're intentionally culling low RPD business, so we don't expect days to grow materially year-over-year and we expect RPD to be flat to slightly up 1%," he said. | * '''Scott said they expect RPD to be flat or up 1% in Q3'''. " For Q3, demand is strong, but we're intentionally culling low revenue per day (RPD) business, so we don't expect days to grow materially year-over-year and we expect RPD to be flat to slightly up 1%," he said. | ||
===== Depreciation ===== | ===== Depreciation ===== | ||
* '''Hertz was able to negotiate lower pricing with OEMs.''' "...and the purchase prices recently negotiated with OEMs already reflect our targeted DPU," CEO Gil West said. | * '''Hertz was able to negotiate lower pricing with OEMs.''' "...and the purchase prices recently negotiated with OEMs already reflect our targeted depreciation per unit (DPU)," CEO Gil West said. | ||
* CFO Scott Haralson said its fleet rotation process will result in non-cash depreciation of over $1 billion from Q3 2024 to the end of 2025. He pointed out that this could be higher or less depending on where residual values will be. | * CFO Scott Haralson said its fleet rotation process will result in non-cash depreciation of over $1 billion from Q3 2024 to the end of 2025. He pointed out that this could be higher or less depending on where residual values will be. | ||
* Scott said the fleet rotation process will result in fleet with DPU of less than $300 by the end of 2025, adding that at the end of Q2 more than 30% of their fleet had DPU of $325 or less and the rest at $600. He pointed out that the deals recently negotiated with automakers will bring in vehicles with DPU rates below $325 later this year and through 2025. | * Scott said the fleet rotation process will result in fleet with DPU of less than $300 by the end of 2025, adding that at the end of Q2 more than 30% of their fleet had DPU of $325 or less and the rest at $600. He pointed out that the deals recently negotiated with automakers will bring in vehicles with DPU rates below $325 later this year and through 2025. | ||
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===== EV fleet ===== | ===== EV fleet ===== | ||
* Gil West said EVs now make up less than 10% of their fleet. | * Gil West said EVs now make up less than 10% of their fleet. | ||
=== Avis Budget Group === | |||
== References == | == References == | ||