Herc (NYSE:HRI) Shares Gap Up After Better-Than-Expected Earnings

Key Points

• Herc shares surged 13.7% after opening at $138.90 versus a prior close of $127.13, later trading near $143.12.
• The company reported EPS of $3.91, beating the $2.92 consensus estimate, while revenue reached $1.36 billion and increased about 4.6% year over year.
• Despite the strong quarter and raised 2026 guidance, the revised full-year sales outlook reportedly remains below analyst expectations; Herc also announced that President Aaron Birnbaum will become CEO on January 1, 2027.

Herc Holdings Inc. (NYSE:HRI - Get Free Report)'s share price gapped up prior to trading on Tuesday following a stronger than expected earnings report. The stock had previously closed at $127.13, but opened at $138.90. Herc shares last traded at $143.12, with a volume of 298,213 shares traded.

The transportation company reported $3.91 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.92 by $0.99. The business had revenue of $1.36 billion for the quarter, compared to analyst estimates of $1.35 billion. Herc had a return on equity of 10.33% and a net margin of 1.01%. The firm's revenue for the quarter was up 4.6% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.22 earnings per share.

Herc Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 16th. Stockholders of record on Wednesday, September 2nd were given a dividend of $0.70 per share. The ex-dividend date of this dividend was Wednesday, September 2nd. This represents a $2.80 annualized dividend and a dividend yield of 1.9%. Herc's dividend payout ratio is currently 190.48%.

Key Headlines Impacting Herc

Here are the key news stories impacting Herc this week:

• Positive Sentiment: Third-quarter earnings beat estimates. Herc reported adjusted earnings of $3.91 per share, well above the $3.08 Zacks consensus and the $2.92 estimate cited by other coverage. EPS also rose from $2.22 a year earlier, indicating significant year-over-year earnings growth. Herc Holdings Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: Revenue reached a record $1.36 billion. Quarterly revenue increased approximately 4.6% to 5% year over year and slightly exceeded the $1.35 billion analyst expectation. Equipment rental revenue grew 12% on an average fleet investment base, reflecting stronger customer demand and rental activity. Herc Holdings Reports Third Quarter 2026 Results
• Neutral Sentiment: CEO succession was announced. President Aaron Birnbaum will succeed Larry Silber as CEO on January 1, 2027, while continuing as president and joining the board. The planned transition provides continuity, but investors may watch for changes in strategy, capital allocation and operating execution. Herc Holdings Announces CEO Succession Plan
• Negative Sentiment: Full-year guidance remains a concern. Herc increased its 2026 guidance, but reports indicate the revised full-year sales outlook is still materially below analyst expectations. That shortfall may offset some of the quarterly earnings strength and raise questions about demand, fleet utilization and future growth.

Analyst Ratings Changes

Several analysts recently issued reports on HRI shares. Weiss Ratings reiterated a "hold (c)" rating on shares of Herc in a report on Monday. JPMorgan Chase & Co. upgraded Herc from a "neutral" rating to an "overweight" rating and raised their price target for the company from $165.00 to $175.00 in a research note on Thursday, September 10th. Zacks Research raised Herc from a "hold" rating to a "strong-buy" rating in a research report on Monday, September 14th. Citigroup dropped their price objective on Herc from $175.00 to $150.00 and set a "buy" rating on the stock in a research note on Monday, October 12th. Finally, BNP Paribas Exane increased their price objective on Herc from $160.00 to $165.00 and gave the company a "neutral" rating in a report on Wednesday, July 29th. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, Herc currently has an average rating of "Moderate Buy" and a consensus target price of $174.86.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. State of Wyoming boosted its holdings in shares of Herc by 21.0% in the 1st quarter. State of Wyoming now owns 616 shares of the transportation company's stock valued at $61,000 after purchasing an additional 107 shares in the last quarter. Integrated Wealth Concepts LLC bought a new position in shares of Herc in the 2nd quarter valued at $68,000. NewEdge Advisors LLC raised its holdings in shares of Herc by 61.4% during the 1st quarter. NewEdge Advisors LLC now owns 694 shares of the transportation company's stock worth $69,000 after buying an additional 264 shares in the last quarter. Nykredit A S acquired a new position in shares of Herc during the 2nd quarter worth $133,000. Finally, J. Safra Sarasin Holding AG bought a new stake in shares of Herc during the 1st quarter worth $223,000. 93.11% of the stock is currently owned by institutional investors and hedge funds.

Herc Trading Up 13.7%

The company has a current ratio of 1.10, a quick ratio of 1.10 and a debt-to-equity ratio of 4.22. The firm has a market capitalization of $4.83 billion, a P/E ratio of 98.54 and a beta of 2.04. The firm has a 50-day moving average of $140.38 and a two-hundred day moving average of $139.59.

Herc Company Profile

Herc Holdings Inc, operating primarily through the Herc Rentals brand, is an equipment rental supplier serving construction, industrial, commercial and government customers. The company provides access to equipment and related services intended to help customers complete projects without purchasing and maintaining their own fleets.

Its rental fleet includes aerial work platforms, earthmoving equipment, material-handling equipment, trucks and trailers, power generation and climate-control equipment, pumps, and general tools.

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