Herc Holdings Inc. to Issue Quarterly Dividend of $0.70 (NYSE:HRI)

Key Points

• Herc Holdings declared a quarterly dividend of $0.70 per share, payable September 16 to shareholders of record on September 2. The dividend implies an annualized payout of $2.80 and a 1.7% yield.
• The dividend appears well covered, with an 18.6% current payout ratio; analysts expect next year’s earnings of $7.87 per share, implying a projected payout ratio of 35.6%.
• Herc’s latest quarterly results exceeded expectations, with EPS of $1.43 versus the $0.76 consensus and revenue of $1.20 billion, up 20.2% year over year. Shares rose 0.5% to $167.67.

Herc Holdings Inc. (NYSE:HRI - Get Free Report) announced a quarterly dividend on Wednesday, August 19th. Stockholders of record on Wednesday, September 2nd will be given a dividend of 0.70 per share by the transportation company on Wednesday, September 16th. This represents a c) dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date is Wednesday, September 2nd.

Herc has a dividend payout ratio of 18.6% meaning its dividend is sufficiently covered by earnings. Analysts expect Herc to earn $7.87 per share next year, which means the company should continue to be able to cover its $2.80 annual dividend with an expected future payout ratio of 35.6%.

Herc Stock Up 0.5%

Shares of NYSE:HRI traded up $0.85 on Wednesday, hitting $167.67. 302,913 shares of the company traded hands, compared to its average volume of 578,926. Herc has a 52 week low of $88.45 and a 52 week high of $188.35. The company has a quick ratio of 1.10, a current ratio of 1.10 and a debt-to-equity ratio of 4.22. The stock has a 50 day simple moving average of $152.67 and a 200-day simple moving average of $137.38. The company has a market cap of $5.61 billion, a PE ratio of 114.06, a PEG ratio of 24.09 and a beta of 1.86.

Herc (NYSE:HRI - Get Free Report) last announced its quarterly earnings results on Tuesday, July 28th. The transportation company reported $1.43 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.76 by $0.67. Herc had a net margin of 1.01% and a return on equity of 10.33%. The company had revenue of $1.20 billion for the quarter, compared to analysts' expectations of $1.16 billion. During the same quarter in the previous year, the business posted $1.87 EPS. Herc's revenue was up 20.2% compared to the same quarter last year. As a group, research analysts expect that Herc will post 6.93 earnings per share for the current year.

Herc Company Profile

Herc Holdings Inc NYSE: HRI operates as a leading equipment rental provider in North America, offering a wide range of machinery and support services to construction, industrial, government and event sectors. The company's fleet includes aerial work platforms, earthmoving equipment, material handling solutions, power generation units and specialty tools, enabling clients to scale their operations without the capital expense of ownership. In addition to basic machinery rentals, Herc provides value-added services such as equipment maintenance, on-site safety training and project consulting to help customers optimize productivity and maintain compliance with industry standards.

Founded as part of Hertz Global Holdings, the equipment rental business was spun off as an independent public company in early 2016.

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