Herc (NYSE:HRI) Issues Earnings Results

Key Points

• Herc Holdings reported earnings of $1.87 per share for the quarter, significantly missing analysts' expectations of $3.11.
• The company has announced a quarterly dividend of $0.70 per share, with a dividend yield of 1.87% and a payout ratio of 62.36%.
• Analysts have recently adjusted their price targets for Herc, with JPMorgan Chase lowering its target from $225 to $140 and maintaining a "neutral" rating.

Herc (NYSE:HRI - Get Free Report) issued its quarterly earnings results on Tuesday. The transportation company reported $1.87 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.29 by $0.58, Zacks reports. The firm had revenue of $1 billion for the quarter, compared to analysts' expectations of $868.23 million. Herc had a return on equity of 20.77% and a net margin of 0.61%.

Herc Stock Down 2.0%

Shares of HRI stock traded down $2.38 on Friday, hitting $114.43. The company's stock had a trading volume of 734,945 shares, compared to its average volume of 530,529. The company has a debt-to-equity ratio of 4.37, a current ratio of 1.15 and a quick ratio of 1.50. Herc has a fifty-two week low of $96.18 and a fifty-two week high of $246.88. The firm's fifty day moving average price is $129.20 and its 200-day moving average price is $142.31. The stock has a market capitalization of $3.80 billion, a price-to-earnings ratio of 133.06, a P/E/G ratio of 2.94 and a beta of 1.86.

Herc Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, June 13th. Investors of record on Friday, May 30th were paid a $0.70 dividend. This represents a $2.80 annualized dividend and a dividend yield of 2.4%. The ex-dividend date of this dividend was Friday, May 30th. Herc's payout ratio is presently 325.58%.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on the company. Citigroup lowered their price target on Herc from $170.00 to $140.00 and set a "buy" rating on the stock in a report on Wednesday. Barclays lowered their target price on Herc from $250.00 to $160.00 and set an "overweight" rating for the company in a research note on Thursday, April 24th. The Goldman Sachs Group reiterated a "buy" rating and issued a $146.00 price target (down from $171.00) on shares of Herc in a research note on Tuesday, April 22nd. JPMorgan Chase & Co. decreased their price target on Herc from $225.00 to $140.00 and set a "neutral" rating for the company in a research note on Monday, April 14th. Finally, Robert W. Baird cut their target price on shares of Herc from $142.00 to $137.00 and set a "neutral" rating on the stock in a report on Wednesday. Two equities research analysts have rated the stock with a hold rating and three have given a buy rating to the company. Based on data from MarketBeat.com, Herc currently has a consensus rating of "Moderate Buy" and a consensus price target of $144.60.

Institutional Investors Weigh In On Herc

A hedge fund recently raised its stake in Herc stock. AQR Capital Management LLC raised its stake in shares of Herc Holdings Inc. (NYSE:HRI - Free Report) by 176.9% during the 1st quarter, according to the company in its most recent filing with the SEC. The firm owned 25,782 shares of the transportation company's stock after purchasing an additional 16,470 shares during the quarter. AQR Capital Management LLC owned 0.09% of Herc worth $3,462,000 as of its most recent filing with the SEC. Institutional investors own 93.11% of the company's stock.

About Herc

Herc Holdings Inc, together with its subsidiaries, operates as an equipment rental supplier. It rents aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction, and lighting equipment, as well as generators, and safety supplies and expendables; and provides ProSolutions, an industry specific solution based services, such as pumping solutions, power generation, climate control, remediation and restoration, and studio and production equipment.