Hertz Global Holdings Inc (NYSE:HTZ) announced that its third-quarter earnings jumped 59 percent, as the rental-car company comes out from recent accounting woes, but sales missed consensus forecast amid currency impacts.
In July, the company finished restating its financials that slashed its earnings by roughly $51 million in 2013 and $58 million in 2012.
Hertz, similar to its rivals, is experiencing new challenges amid increasing vehicle-sharing operations, like Uber, continues to effect the rental industry.
The company has been making efforts to turn around things. Hertz appointed John Tague as its Chief Executive Officer in November and announced earlier this year that it planned to increase rental rates.
Tague said that improvement in the company’s earnings in the latest quarter is an early indication of the potential Hertz see in its performance improvement strategy. Tague pointed towards fleet effectiveness, which rose 3 percentage points to 83 percent from the same period last year. He also said the company had finished the integration of Dollar Thrifty business, after the closing of the merger back in 2012.
The company posted earnings of $237 million, or 52 cents per share for the latest quarter, well above $149 million, or 32 cents per share, in the same period last year. On adjusted basis, Hertz announced earnings of 49 cents per share.
Revenue for the quarter came in at $2.98 billion, down 4.6 percent from the same period last year. Analysts surveyed by Thomson Reuters were looking for an adjusted profit of 52 cents per share on revenue of $3.1 billion.
Sales slipped 1.6 percent in the car-rental segment, 13.6 percent in its overseas car-rental business, while 2.9 percent in its world-wide equipment-rental division.
Hertz (HTZ) shares have dropped more than 24 percent so far this year. The company has a market cap of $8.59 billion.
