Herc Holdings Inc. Reports Record First Quarter Revenue of $804 Million

Strong Start to 2024:

In Bonita Springs, Florida, Herc Holdings Inc. (NYSE: NYSE:) announced an impressive kick-off to 2024 with a record-breaking first quarter revenue of $804 million. This marks a remarkable 9% increase from the same period last year. The company exceeded analyst expectations with an earnings per share (EPS) of $2.29, surpassing estimates by $0.14.

Positive Trends in Equipment Rental Revenue:

The company saw a positive trend in equipment rental revenue, with a 5.1% pricing increase and an 8.0% volume increase, despite challenges from inflation and a mixed market.

Key Financial Metrics:

Herc Holdings’ adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) increased by 10% to reach $339 million, with an improved adjusted EBITDA margin of 42.2%. However, net income experienced a slight 3% decrease to $65 million, or $2.29 per diluted share, compared to the same quarter in the prior year.

Strategic Focus and Growth Markets:

Larry Silber, the company’s president and CEO, attributed the strong quarter to Herc Holdings’ strategic focus on growth markets such as semiconductor, data centers, renewables, and public infrastructure. The company’s emphasis on enhancing customer experience, managing fleet efficiency, and expanding its network through strategic acquisitions and greenfield locations has also contributed to its success.

Guidance for Full Year 2024:

Looking ahead to the full year, Herc Holdings maintains its guidance for equipment rental revenue growth between 7% to 10% and an adjusted EBITDA of $1.55 billion to $1.60 billion. This guidance reflects the company’s confidence in its performance for the remainder of the year.

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