Hertz is putting a lot of resources into an off-airport car rental initiative, and it looks like things are paying off well for the company.
Hertz’s second-quarter net income climbed 31 percent and revenue jumped 22 percent as several of the car rental company’s segments achieved double-digit revenue growth.
The results were largely in line with Wall Street expectations, and Hertz reaffirmed its forecast for the year.
Chairman and CEO Mark Frissora said in a statement on Monday that there was double-digit revenue growth in the U.S. off-airport car rental business, the leisure car rental segment, its equipment rental business and Donlen Corp., a provider of fleet leasing and management services. Hertz acquired Donlen in 2011.
Hertz Global Holdings Inc. earned $121.4 million, or 27 cents per share, for the three months ended June 30. A year earlier it earned $92.9 million, or 21 cents per share.
Removing certain one-time items, earnings were 45 cents per share. Adjusted earnings were 35 cents per share in the prior-year period.
This met the expectations of analysts polled by FactSet.
Revenue for the Park Ridge, N.J., company rose to $2.71 billion from $2.23 billion as worldwide car rental revenue climbed 23 percent to $2.33 billion. Wall Street expected $2.7 billion in revenue.
Hertz said that transactions days for car rentals climbed 22 percent, mostly because of the buyout of fellow car rental company Dollar Thrifty Automotive Group.
Hertz acquired Tulsa-based Dollar Thrifty for $2.3 billion in November under an interim agreement and consent order. As part of that deal, Hertz sold off its former Advantage car rental business, select airport operations and some other assets. Earlier this month the Federal Trade Commission issued a final consent order for the transaction.
Global equipment rental revenue increased 15 percent to $384.4 million on higher prices and stronger equipment rental volumes.
Hertz maintained its forecast for 2013 adjusted earnings of $1.82 to $1.92 per share on revenue of $10.85 billion to $10.95 billion. Analysts expect full-year earnings of $1.90 per share on revenue of $10.9 billion.
Hertz shares finished at $26.89 in trading on Friday. Its share are down 3 percent from a 52-week high of $27.75 on July 18. They traded as low as $10.85 last August.
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