Hertz foresees strong summer rental demand, beats Wall Street expectations
2022.04.27 23:10
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FILE PHOTO: A person walks by the counter of Hertz rental car at John F. Kennedy International Airport in Queens, New York City, U.S., March 30, 2022. REUTERS/Andrew Kelly
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By Tina Bellon
(Reuters) – Hertz Global Holdings (OTC:HTZGQ) Inc new chief executive on Wednesday said he expects Americans’ pent-up desire for a summer vacation to lead to continued strong rental car demand despite rising inflation.
The rental car company, which emerged from bankruptcy last year, beat analysts’ first-quarter expectations for top- and bottom-line growth at a time when tight vehicle supply is allowing rental companies to charge record rates.
Hertz CEO Stephen Sherr, a former Goldman Sachs (NYSE:GS) finance chief who took the helm at the end of February, said strong demand in the second half of the first quarter carried over into April.
“You may well see consumptive behavior elevated this summer, inflationary tendencies notwithstanding, because consumers did not have the opportunity to travel due to COVID,” Sherr said in an interview with Reuters.
Hertz reported revenue of $1.8 billion in the three months through March, and a net income of $426 million. Analysts on average had expected the company to post $1.7 billion and $375 million respectively, according to Refinitiv data.
