Herc Holdings Shares Slide After Revenue Misses Analyst Targets

The company's stock dropped 8.7% to $158.18 during morning trading, extending a 12-month decline to 15%. While Herc Holdings moved into the black with a net profit of $24 million, or 72 cents per share, investors focused on top-line misses in core segments. In the same period last year, the company reported a loss of $46 million.

On an adjusted basis, the company outperformed earnings expectations, posting $2.07 per share against the $1.87 projected by analysts surveyed by FactSet. However, total revenue of $1.21 billion failed to meet the $1.25 billion consensus. The critical equipment rental segment generated $1.04 billion, trailing the $1.08 billion anticipated by the market.

Missed Targets and Future Outlook

Operational performance also lagged slightly behind internal and external benchmarks. Adjusted EBITDA reached $519 million, missing the $538.1 million target set by analysts. Despite these gaps, the company’s total revenue still grew significantly from the $951 million reported in the prior year's fourth quarter.

Looking ahead to the full year, Herc Holdings issued guidance reflecting continued growth. The company expects equipment rental revenue to range between $4.23 billion and $4.4 billion. Additionally, management projects adjusted EBITDA will land between $2 billion and $2.1 billion for the current fiscal year.