Car and equipment rental provider Hertz Global Holdings, Inc. (HTZ), the parent company of Hertz Corp., reported Monday a loss for the first quarter compared to a loss last year, reflecting lower expenses and revenue growth amid contribution from the Dollar Thrifty Automotive Group acquisition.
Adjusted earnings per share for the quarter topped analysts' expectations, while quarterly revenues missed their estimates by a whisker. The company also reaffirmed its earnings and revenue forecast for the full-year 2013.
"We've now achieved record year-over-year adjusted pre-tax income seven consecutive quarters and increased employee productivity twenty six consecutive quarters. Our record first quarter 2013 results were driven by year-over-year, double-digit revenue and pre-tax margin growth in the car and equipment rental and leasing businesses, especially in North America," Chairman and CEO Mark Frissora said in a statement.
The company also added that Dollar Thrifty, which was acquired in November 2012, is performing better than anticipated, with integration and synergy progress exceeding its targets.
The Park Ridge, New Jersey-based company posted net income of $18.0 million or $0.04 per share for the first quarter, compared to a loss of $56.3 million or $0.13 per share in the prior-year quarter.
Excluding non-recurring items, adjusted net income was $93.9 million or $0.21 per share, compared to $19.4 million or $0.05 per share in the year-ago quarter.
On average, eight analysts polled by Thomson Reuters expected the company to report earnings of $0.17 per share for the first quarter. Analysts' estimates typically exclude special items.
Worldwide revenues for the quarter grew 24.3 percent to $2.44 billion from $1.96 billion in the same quarter last year, and topped five Wall Street analysts' consensus estimate of $2.39 billion by a whisker.
Global Car Rental revenues surged 25.7 percent to $2.08 billion from the year-ago quarter, with number of transactions growing 20.4 percent and average number of cars increasing 27.2 percent. However, total rental revenue per transaction day only grew 2.6 percent.
Worldwide equipment rental also grew 16.2 percent to $351.0 million from the prior-year quarter, driven by an 18.6 percent revenue increase in North America, on volume growth of 15.7 percent and a 3.6 percent increase in pricing.
Total expenses as a percentage of total revenues for the quarter contracted 490 basis points to 97.0 percent from last year.
Looking ahead to fiscal 2013, Hertz continues to expect adjusted earnings in the range of $1.82 to $1.92 per share, on projected worldwide revenues between $10.85 billion and $10.95 billion. Street is currently looking for full-year 2013 earnings of $1.90 per share on revenues of $10.91 billion.
HTZ closed Monday's regular trading session at $23.97, down $0.22 or 0.91% on a volume of 6.42 million shares.
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