Hertz stock gains after first-quarter revenue tops estimates

Investing.com -- Hertz Global Holdings (NASDAQ: HTZ) shares rose 5.12% Thursday after the car rental company reported first-quarter revenue that exceeded Wall Street expectations.

The company posted revenue of $2 billion for the quarter, surpassing the consensus estimate of $1.88 billion. The loss per share came in at $0.72, slightly wider than the analyst estimate of a $0.71 loss.

Hertz maintained its full-year guidance but adjusted its underlying assumptions. The company now expects higher pricing to be offset by lower rental days than originally projected. Management anticipates depreciation per unit below $300.

"HTZ reported strong results, as rev and EBITDA both ran ahead of cons estimates, driven by MSD% pricing offset by higher DPU than guided," Jefferies analysts commented. "The guide for the year was maintained but now expects higher pricing offset by lower days than originally assumed. Further, guide anticipates DPU below $300. We remain on the sidelines, given the liquidity position remains tenuous, but believe mgmt is managing what's in their control well."

The revenue beat was driven by mid-single-digit percentage pricing gains, though this was partially offset by higher depreciation per unit than previously guided. The company's ability to generate stronger pricing helped push revenue above expectations despite challenges in other areas of the business.

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