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Hertz:Quarterly Results/2022 Q4: Difference between revisions
Hertz:Quarterly Results/2022 Q4 (view source)
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https://newsroom.hertz.com/news-releases/news-release-details/hertz-reports-strong-fourth-quarter-and-record-full-year-2022</ref> == | https://newsroom.hertz.com/news-releases/news-release-details/hertz-reports-strong-fourth-quarter-and-record-full-year-2022</ref> == | ||
Hertz reported earnings and revenue that beat analysts' estimates by 2 cents and $2 million, respectively. Earnings benefitted from an improvement in operating performance, while revenue was driven by travel recovery. Also, Q4 benefitted from the decline in EV prices. While being interviewed by CNBC, CEO Stephen Scherr noted that business from corporate travelers grew 31% year-over-year in 2022 while international inbound travel rose 88%. According to the company, its international inbound business has been slower to recover. The other metrics that beat expectations are rate and volume. In fact, the volume performance exceeded the seasonal level by 500 basis points. Additionally, vehicle utilization rose by 100 basis points year-over-year. Also, transaction days rose by 3% year-over-year, exceeding the seasonal expectations for a 10% reduction. | Hertz reported earnings and revenue that beat analysts' estimates by 2 cents and $2 million, respectively. Earnings benefitted from an improvement in operating performance, while revenue was driven by travel recovery. Also, Q4 benefitted from the decline in EV prices. While being interviewed by CNBC, CEO Stephen Scherr noted that business from corporate travelers grew 31% year-over-year in 2022 while international inbound travel rose 88%. According to the company, its international inbound business has been slower to recover. The other metrics that beat expectations are rate and volume. In fact, the volume performance exceeded the seasonal level by 500 basis points. Additionally, vehicle utilization rose by 100 basis points year-over-year. Growth in vehicle utilization was only observed in the international segment, which grew from 68% in 2021 to 72% in 2022. On the other hand, vehicle utilization in the American segment was constant at 80% versus 2021. Also, transaction days rose by 3% year-over-year, exceeding the seasonal expectations for a 10% reduction. | ||
The company also gave upbeat guidance for Q1, Q2, and Q3. Seasonally, Q1 is normally less than Q4, but Hertz now expects it to be flat. For Q2 and Q3, Hertz expects revenue to rise sequentially as rates and volume increases. However, it forecasts Q4 to move down seasonally from those levels. | The company also gave upbeat guidance for Q1, Q2, and Q3. Seasonally, Q1 is normally less than Q4, but Hertz now expects it to be flat. For Q2 and Q3, Hertz expects revenue to rise sequentially as rates and volume increases. However, it forecasts Q4 to move down seasonally from those levels. | ||