Hertz:Quarterly Results/2022 Q4: Difference between revisions

Hertz:Quarterly Results/2022 Q4 (view source)

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 == Results ==
-Hertz reported earnings and revenue that beat analysts estimates by 2 cents and $2 million respectively.
+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 the recovery in travels. Also, Q4 benefitted from 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 56%. According to the company, its international inbound business has been slower to recover. The other metrics that beat espectations 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 expections for a 10% reduction.
-NOTES:
+The company also gave upbeat guidance for Q1, Q2 and Q3. Seasonally, Q1 is normally less than Q4 but Hertz now expect it to be flat. For Q2 and Q3, Hertz expect revenue to rise sequentially as rates and volume increases. However, it forecasts Q4 to move down seasonally from those levels.
--International inbound have been slower to recover but hold considerable promise for us. As of the fourth quarter in the Americas, corporate was at about 80% of 2019 levels and international inbound grew to about 50%, up from 45% in Q3.
--We expect our average fleet size in Q1 to be higher than what we closed the year(480,000) in light of elevated levels of demand.
--benefited in Q4 from price declines on EV purchases.
--Seasonally, first quarter revenue is normally slightly below Q4 based on a reduction in volumes and flat RPD. However, for Q1 this year, we expect revenue to be flat compared with Q4 with transaction days to hold steady.
--Both rate and volume met our expectations for the quarter, as we laid out on our last call, and I'll reiterate that the volume performance was 500 bps better than seasonality typically yield. Utilization increased 100 bps year-over-year despite severe air travel disruptions in the U.S. at year-end.
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