Equipment rental company Herc Holdings (NYSE: HRI) will be reporting results this Tuesday before market open. Here’s what to look for.
Herc beat analysts’ revenue expectations by 1% last quarter, reporting revenues of $861 million, up 7.1% year on year. It was a disappointing quarter for the company, with a miss of analysts’ Equipment rentals revenue estimates and full-year revenue guidance missing analysts’ expectations significantly.
Is Herc a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Herc’s revenue to grow 11.3% year on year to $944.1 million, improving from the 5.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.76 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Herc has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Herc’s peers in the industrial distributors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Richardson Electronics delivered year-on-year revenue growth of 9.5%, missing analysts’ expectations by 3.7%, and United Rentals reported revenues up 4.5%, topping estimates by 0.8%. Richardson Electronics traded up 10.9% following the results while United Rentals was also up 9.5%.
Read our full analysis of Richardson Electronics’s results here and United Rentals’s results here.
There has been positive sentiment among investors in the industrial distributors segment, with share prices up 6.8% on average over the last month. Herc is up 13.2% during the same time and is heading into earnings with an average analyst price target of $180.18 (compared to the current share price of $149.08).
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