Will Rental Revenues Boost Herc Holdings' (HRI) Q1 Earnings?
Zacks Investment Research | Apr 29, 2019 11:56PM ET
Herc Holdings (NYSE:HRI) is scheduled to release first-quarter 2019 financial numbers on May 2, before market open.
In the last reported, the company delivered better-than-expected earnings per share. Furthermore, Herc Holdings has an impressive earnings surprise history, having surpassed the consensus mark in three of the trailing four quarters.
Investors are keeping their fingers crossed and hoping that Herc Holdings will deliver a solid performance and surpass the earnings estimate in the soon-to-be-reported quarter as well.
Let’s delve deeper and find out the factors likely to impact Herc Holdings’ quarterly results.
We expect equipment rental revenues to increase in the first quarter and provide a boost to the top line. Apart from favorable market conditions, the company’s fleet and customer diversification initiatives should lead to an uptick in rental revenues. Its focus on improving equipment mix and reducing fleet age is also likely to support top-line growth in the soon-to-be-reported quarter. Favorable pricing might too boost results.
Meanwhile, reduction in effective tax rate due to the current tax law should aid bottom-line growth. However, high operating expenses may limit bottom-line growth in the soon-to-be-reported quarter. Increased personnel and transportation costs are likely to bump up operating expenses. Additionally, high net fleet capital expenditures may hurt the bottom line by pushing up costs.
What Does the Zacks Model Say?
Our proven model does not predict an earnings beat for Herc Holdings in first-quarter 2019. This is because a stock needs to have a positive Zacks Investment Research
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