Hertz Gains as 2013 Forecasts Exceed Analysts’ EstimatesMark Clothier
Hertz Global Holdings Inc., the largest publicly traded U.S. auto-rental chain, rose after projecting full-year profit and sales that exceeded analysts’ estimates as it benefits from its acquisition of Dollar Thrifty Automotive Group Inc.
Hertz gained 1.7 percent to $19.04 at the close in New York. The shares have advanced 17 percent this year compared with a 4.3 percent gain for the Standard & Poor’s 500 Index.
Adjusted earnings per share for 2013 will rise to $1.82 to $1.92, on sales of as much as $10.95 billion, the Park Ridge, New Jersey based company said today in a statement. Analysts projected $1.73 a share on revenue of $10.6 billion, the averages of estimates compiled by Bloomberg.
Hertz acquired Dollar Thrifty last year for about $2.6 billion.
“Our operating strengths and strategic investments are expected to help yield breakout results from 2013 through 2015 in the forms of further margin expansion and accelerated cash flow generation,” Mark Frissora, Hertz’s chief executive officer, said in the statement.
Hertz posted a fourth-quarter loss of $36.4 million, or 9 cents a share, compared with a profit of $47.1 million, or 11 cents, a year earlier, the company said today. Excluding $144.1 million, or 24 cents a share, in costs related to the acquisition of Dollar Thrifty, profit totaled 33 cents a share. Analysts anticipated profit of 31 cents, on average.
Sales rose 15 percent to $2.32 billion, compared with the $2.24 billion average of analysts’ estimates.