Hertz Global Holdings (OTC:), Inc. (HTZ) announced its financial results for the second quarter of 2024 on August 1, 2024.
HTZ reported revenue of $2.4 billion in the second quarter, slightly below analyst estimates of $2.47 billion. This represents a 3% increase year-over-year compared to $2.437 billion in the second quarter of 2023.
Shares fell 7% in premarket trading Thursday after the results.
The company reported an adjusted net loss of $440 million for the quarter, compared to an adjusted net income of $227 million in the year-ago quarter. This represents a significant decline in profitability.
HTZ reported an adjusted diluted loss per share of $1.44 for the second quarter, missing analysts’ estimates of a loss of $1.02. In the second quarter of 2023, the company reported an adjusted diluted earnings per share of $0.72.
The company’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was $460 million, a sharp decline from $347 million in the same quarter last year.
Total daily revenue, a measure of average daily revenue, increased 3% year over year to $59.65 in Q2 2024, compared to $61.62 in Q2 2023.
Total monthly RPU, which refers to revenue generated per vehicle, decreased 5% to $1,446 in the second quarter, compared to $1,527 in the year-ago quarter.
Vehicle utilization rate, which measures the efficiency of the rental fleet, improved from 82% in Q2 2023 to 80% in Q2 2024.
The average vehicle depreciation cost per month, which represents the average cost of depreciation per vehicle, increased significantly from $197 in Q2 2023 to $600 in Q2 2024.
Gil West, CEO of Hertz, highlighted the company’s progress on fleet optimization and cost management initiatives. He said Hertz is focused on driving profitability through operational excellence, improving customer service and strategic fleet management.
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