Herc (HRI) reports earnings tomorrow: what to expect

Equipment rental company Herc Holdings (NYSE:HRI) will be reporting results this Tuesday before market open. Here’s what to look for.

Herc beat analysts’ revenue expectations last quarter, reporting revenues of $1.20 billion, up 20.2% year on year. It was a satisfactory quarter for the company, with a beat of analysts’ EPS estimates but full-year revenue guidance missing analysts’ expectations significantly.

Is Herc a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Herc’s revenue to grow 2.5% year on year, slowing from the 35.1% increase it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Herc rarely misses Wall Street’s revenue estimates.

Looking at Herc’s peers in the industrial distributors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Richardson Electronics delivered year-on-year revenue growth of 18.9%, beating analysts’ expectations by 10.1%, and United Rentals reported revenues up 15.7%, topping estimates by 4.4%. Richardson Electronics’s stock price was unchanged after the resultswhile United Rentals was up 3.3%.

Read our full analysis of Richardson Electronics’s results here and United Rentals’s results here.

In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the industrial distributors stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.9% on average over the last month. Herc is down 4.3% during the same time and is heading into earnings with an average analyst price target of $182.67 (compared to the current share price of $128.11).

WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it.

This is what the early days of Palantir looked like before it became a giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.