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Sixt:Quarterly Results/2023 Q1: Difference between revisions
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* Hertz said it is projecting for a strong summer demand for rental vehicles and projected a 20% sequential increase in revenue in the second quarter of 2023<ref name=":1" />. | * Hertz said it is projecting for a strong summer demand for rental vehicles and projected a 20% sequential increase in revenue in the second quarter of 2023<ref name=":1" />. | ||
* International inbound travel "remains only 60% back to pre-pandemic levels through Q1."<ref name=":2">https://seekingalpha.com/article/4597309-hertz-global-holdings-inc-htz-q1-2023-earnings-call-transcript</ref> | * International inbound travel "remains only 60% back to pre-pandemic levels through Q1."<ref name=":2">https://seekingalpha.com/article/4597309-hertz-global-holdings-inc-htz-q1-2023-earnings-call-transcript</ref> | ||
* CEO Stephen Scherr noted that Q1 results broke seasonal trends where demand is usually softer compared to Q4. "Our optimism is further bolstered by the positive demand indicators coming from the broader travel industry as we move into the critical summer season," he noted<ref name=":2" />. | * CEO Stephen Scherr noted that Q1 results broke seasonal trends where demand in Q1 is usually softer compared to Q4. "Our optimism is further bolstered by the positive demand indicators coming from the broader travel industry as we move into the critical summer season," he noted<ref name=":2" />. | ||
* Scherr pointed out that pricing was softer sequentially in Q1, but rates in March were higher than the whole of Q4. Rates in Q1 were flat year-over-year. However, pricing in Europe is seeing an uptick. "Pricing has been holding, particularly in the U.S market. And we have seen a pickup in pricing dynamics, particularly in the European market," he said<ref name=":2" />. | * Scherr pointed out that pricing was softer sequentially in Q1, but rates in March were higher than the whole of Q4. Rates in Q1 were flat year-over-year. However, pricing in Europe is seeing an uptick. "Pricing has been holding, particularly in the U.S market. And we have seen a pickup in pricing dynamics, particularly in the European market," he said<ref name=":2" />. | ||
* Scherr added that airlines and hotels are projecting strong demands "and have reported strength in advanced summer bookings in their earnings calls."<ref name=":2" /> However, he cautioned that the economy remains uncertain. "Before returning the call to Alex, it is important that we acknowledge the uncertainty in the market and the view that near-term strength in consumer demand may be unsustainable in a weakening economy," he said. | * Scherr added that airlines and hotels are projecting strong demands "and have reported strength in advanced summer bookings in their earnings calls."<ref name=":2" /> However, he cautioned that the economy remains uncertain. "Before returning the call to Alex, it is important that we acknowledge the uncertainty in the market and the view that near-term strength in consumer demand may be unsustainable in a weakening economy," he said. | ||
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* There is high probability tha Sixt will beat revenue estimates. | * There is high probability tha Sixt will beat revenue estimates. | ||
* International inbound business presents an opportunity to Sixt as we move forward | * International inbound business presents an opportunity to Sixt as we move forward-given that it hasn't picked up. | ||
* Europe which saw an uptick in rates during the quarter is Sixt's main source of revenue. It accounted for 42% of Sixt's total revenue in 2022. | * Europe which saw an uptick in rates during the quarter is Sixt's main source of revenue. It accounted for 42% of Sixt's total revenue in 2022. | ||
* Sixt's outlook for Q2 will likely be positive. | * Sixt's outlook for Q2 will likely be positive. | ||