Latest news with #HertzCorporation
Yahoo
03-07-2025
- Automotive
- Yahoo
Major Rental Car Company's New Policy Drives Controversy
Major Rental Car Company's New Policy Drives Controversy originally appeared on Parade. If you plan on hitting the road in a rental car or truck this summer, consumers are warning about a new policy that took effect at one of the biggest vehicle rental companies recently. Back in April, popular car and truck rental service Hertz announced it would employ artificial intelligence (AI) to check over its returned vehicles instead of tasking a human with the inspection. At the time, Hertz explained it partnered with Israeli AI vehicle inspection system company, UVeye, to "transform" how it maintains its vehicles and "bring efficiency and greater accuracy" to the process so it can "focus on our vehicles being ready when and where our customers want them." While Hertz intended the process to be smoother, some consumers complain that the new system is reason to "never rent from them again." Especially after hearing the story of one customer who returned his Thrifty rental vehicle (part of the Hertz Corporation) to the Hartsfield-Jackson Atlanta International Airport and was later charged over $400 for a 1-inch scuff discovered on a tire by the AI scanner, according to a report by The Drive. The outlet reported a $250 charge for the repair, $125 for processing, and another $65 administrative fee, totaling $440. The renter said he was made aware of the fees only minutes after dropping off the car, but could not speak to a human about it. Related: Social media has now become a hot spot for concerns sparked by the "frustrating" situation. "AI can't keep a reservation right for the amount of cars on the lot," one X user said, suggesting the entire system is flawed. "What a scam," a second declared. "How many times is Hertz charging customers for the same small scuffs," another asked, worried that a scuff picked up and paid for by one renter could then be "found" by the AI again when the next renter returns it. But those who have used it say that it doesn't work that way–some are even applauding the new policy. "Customers are directed to a web portal where they can view before-and-after photos captured by the scanners," a second X (formerly Twitter) user shared. "I've used this in Columbus OH and it was great." "I actually love this technology. It captures the before & after image of the car detail, and charges the renter who caused the damage rather than having to raise rates on the rest of us," they added. Related: In a statement first shared with USA Today, a Hertz spokesperson said: "Over 97% of cars scanned with this technology show no billable damage, proving that the vast majority of rentals are incident-free. Vehicle damage has long been a common pain point across the car rental industry for customers and companies alike. At Hertz, we're using this technology to tackle this head-on." "As we continue rolling out this technology, we remain committed to ongoing innovation and continuous improvement," they added, noting that any issues flagged by a customer in the chat are reviewed by a live agent. "With regards to this specific incident, a live agent reviewed this customer's escalation and manually reviewed the photos at pickup and return and confirmed the damage was new," the spokesperson said. "While we understand that some customers may hope for a different outcome, we want to ensure every case is handled fairly and objectively, using the best information available." Hertz said it's working on integrating its live agents into its app to make communicating with a customer service representative easier. The rental company, which also owns Dollar Car Rental, Thrifty Car Rental, and Firefly Car Rental, said it began the rollout of its AI scanners at the Atlanta airport this spring, but plans to expand to most major U.S. airports by the end of the year. Next: Major Rental Car Company's New Policy Drives Controversy first appeared on Parade on Jul 2, 2025 This story was originally reported by Parade on Jul 2, 2025, where it first appeared.
Yahoo
22-04-2025
- Business
- Yahoo
Herc's (NYSE:HRI) Q1 Sales Beat Estimates But Full-Year Sales Guidance Misses Expectations Significantly
Equipment rental company Herc Holdings (NYSE:HRI) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 7.1% year on year to $861 million. On the other hand, the company's full-year revenue guidance of $1.61 billion at the midpoint came in 55.8% below analysts' estimates. Its non-GAAP profit of $1.30 per share was 41.2% below analysts' consensus estimates. Is now the time to buy Herc? Find out in our full research report. Revenue: $861 million vs analyst estimates of $852.4 million (7.1% year-on-year growth, 1% beat) Adjusted EPS: $1.30 vs analyst expectations of $2.21 (41.2% miss) Adjusted EBITDA: $339 million vs analyst estimates of $361.9 million (39.4% margin, 6.3% miss) Operating Margin: 18.6%, up from 17.5% in the same quarter last year Free Cash Flow was -$16 million, down from $92 million in the same quarter last year Market Capitalization: $3.18 billion 'As expected, the 2025 operating landscape continues to be a tale of two disparate economic trends,' said Larry Silber, president and chief executive officer. Formerly a subsidiary of Hertz Corporation and with a logo that still bears some similarities to its former parent, Herc Holdings (NYSE:HRI) provides equipment rental and related services to a wide range of industries. Historically, specialty equipment distributors have boasted deep selection and expertise in sometimes narrow areas like single-use packaging or unique lighting equipment. Additionally, the industry has evolved to include more automated industrial equipment and machinery over the last decade, driving efficiencies and enabling valuable data collection. Specialty equipment distributors whose offerings keep up with these trends can take share in a still-fragmented market, but like the broader industrials sector, this space is at the whim of economic cycles that impact the capital spending and manufacturing propelling industry volumes. Examining a company's long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last five years, Herc grew its sales at an excellent 13.1% compounded annual growth rate. Its growth beat the average industrials company and shows its offerings resonate with customers, a helpful starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Herc's annualized revenue growth of 11.6% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. Herc also breaks out the revenue for its most important segment, Equipment rentals. Over the last two years, Herc's Equipment rentals revenue (aerial, earthmoving, material handling) averaged 9.5% year-on-year growth. This quarter, Herc reported year-on-year revenue growth of 7.1%, and its $861 million of revenue exceeded Wall Street's estimates by 1%. Looking ahead, sell-side analysts expect revenue to grow 3.2% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and suggests its products and services will face some demand challenges. At least the company is tracking well in other measures of financial health. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Herc has been a well-oiled machine over the last five years. It demonstrated elite profitability for an industrials business, boasting an average operating margin of 19.2%. This result isn't surprising as its high gross margin gives it a favorable starting point. Analyzing the trend in its profitability, Herc's operating margin rose by 8.2 percentage points over the last five years, as its sales growth gave it immense operating leverage. This quarter, Herc generated an operating profit margin of 18.6%, up 1 percentage points year on year. The increase was encouraging, and because its gross margin actually decreased, we can assume it was more efficient because its operating expenses like marketing, R&D, and administrative overhead grew slower than its revenue. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Herc's EPS grew at an astounding 28.3% compounded annual growth rate over the last five years, higher than its 13.1% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. Diving into the nuances of Herc's earnings can give us a better understanding of its performance. As we mentioned earlier, Herc's operating margin expanded by 8.2 percentage points over the last five years. On top of that, its share count shrank by 1.4%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For Herc, EPS didn't budge over the last two years, a regression from its five-year trend. Given the merits in other parts of its business, we're hopeful it can revert to earnings growth in the coming years. In Q1, Herc reported EPS at $1.30, down from $2.36 in the same quarter last year. This print missed analysts' estimates, but we care more about long-term EPS growth than short-term movements. Over the next 12 months, Wall Street expects Herc's full-year EPS of $11.84 to grow 8.9%. It was good to see Herc narrowly top analysts' revenue expectations this quarter. On the other hand, its Equipment rentals revenue missed and its full-year revenue guidance fell short of Wall Street's estimates. Overall, this quarter could have been better. The stock remained flat at $111.50 immediately following the results. The latest quarter from Herc's wasn't that good. One earnings report doesn't define a company's quality, though, so let's explore whether the stock is a buy at the current price. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
Yahoo
18-04-2025
- Business
- Yahoo
Three major companies hit by data breaches: how to protect yourself
COLUMBUS, Ohio (WCMH) — What do a car rental corporation, a lab testing provider, and a kidney dialysis firm all have in common? Data breaches. In just the last week, the Hertz Corporation, Laboratory Services Cooperative (LSC) — which provides lab testing services to select Planned Parenthood centers — and DaVita all announced that they were victims of data breaches or data theft. Essentially, hackers or 'threat actors' gained access to the companies' systems and customer information, including names, contact information, dates of birth, credit card information, and Social Security numbers. DaVita said it was the victim of a ransomware attack. 'Corporate greed': Moreno sends scathing letter to CEOs over Chillicothe paper mill closure 'Ransomware is the issue of malware or a virus that takes over your device, your computer, your company's network, and it basically shuts it down, and it locks up or encrypts your data and your information,' Mike Moran, president of Columbus cybersecurity support firm, Affiliated Resource Group, said. 'They expect you to pay to get access to it. So, if you think about it, they've kidnapped your data and they want you to pay a ransom.' All three organizations said they're working to identify and notify affected consumers. If you are or even suspect you could be one of those affected, it's important to act quickly to protect your information from being used by one of these bad actors. You can: Freeze your credit with all three major credit reporting agencies — Equifax, Experian and TransUnion. It's free to do at any time and has no effect on your credit score. Add fraud alerts to your accounts. If you have one on your credit file, businesses must verify your identity before extending any new credit or opening any new accounts in your name. Keep a close eye on your existing accounts, including any suspicious credit card transactions. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
31-03-2025
- Business
- Yahoo
Reflecting On Specialty Equipment Distributors Stocks' Q4 Earnings: Herc (NYSE:HRI)
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let's take a look at how Herc (NYSE:HRI) and the rest of the specialty equipment distributors stocks fared in Q4. Historically, specialty equipment distributors have boasted deep selection and expertise in sometimes narrow areas like single-use packaging or unique lighting equipment. Additionally, the industry has evolved to include more automated industrial equipment and machinery over the last decade, driving efficiencies and enabling valuable data collection. Specialty equipment distributors whose offerings keep up with these trends can take share in a still-fragmented market, but like the broader industrials sector, this space is at the whim of economic cycles that impact the capital spending and manufacturing propelling industry volumes. The 8 specialty equipment distributors stocks we track reported a slower Q4. As a group, revenues missed analysts' consensus estimates by 0.8% while next quarter's revenue guidance was in line. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 11.8% since the latest earnings results. Formerly a subsidiary of Hertz Corporation and with a logo that still bears some similarities to its former parent, Herc Holdings (NYSE:HRI) provides equipment rental and related services to a wide range of industries. Herc reported revenues of $951 million, up 14.4% year on year. This print exceeded analysts' expectations by 2.5%. It was still a decent quarter for the company with a solid beat of analysts' adjusted operating income estimates. "In 2024, despite a more challenging market than anticipated, we delivered another year of record results, significantly outperforming industry revenue growth by leveraging the strength of tenured customer relationships, the value derived from strategic capital-allocation priorities and our diversified position across products, geographies and end markets," said Larry Silber, president and chief executive officer. Herc achieved the fastest revenue growth of the whole group. Still, the market seems discontent with the results. The stock is down 19% since reporting and currently trades at $137.43. Is now the time to buy Herc? Access our full analysis of the earnings results here, it's free. Owning the largest rental fleet in the world, United Rentals (NYSE:URI) provides equipment rental and related services to construction, industrial, and infrastructure industries. United Rentals reported revenues of $4.10 billion, up 9.8% year on year, outperforming analysts' expectations by 3.9%. The business had a strong quarter with an impressive beat of analysts' organic revenue and adjusted operating income estimates. United Rentals delivered the biggest analyst estimates beat among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 19% since reporting. It currently trades at $614.20. Is now the time to buy United Rentals? Access our full analysis of the earnings results here, it's free. Founded in 1947, Richardson Electronics (NASDAQ:RELL) is a distributor of power grid and microwave tubes as well as consumables related to those products. Richardson Electronics reported revenues of $49.49 million, up 12.1% year on year, falling short of analysts' expectations by 3.5%. It was a disappointing quarter as it posted a significant miss of analysts' EBITDA and EPS estimates. As expected, the stock is down 23.1% since the results and currently trades at $11.31. Read our full analysis of Richardson Electronics's results here. Founded in 1984, Alta Equipment Group (NYSE:ALTG) is a provider of industrial and construction equipment and services across the Midwest and Northeast United States. Alta reported revenues of $498.1 million, down 4.5% year on year. This number beat analysts' expectations by 2.6%. Aside from that, it was a slower quarter as it logged a significant miss of analysts' adjusted operating income estimates. The stock is down 14.2% since reporting and currently trades at $4.37. Read our full, actionable report on Alta here, it's free. Inspired by a family gas station, Custom Truck One Source (NYSE:CTOS) is a distributor of trucks and heavy equipment. Custom Truck One Source reported revenues of $520.7 million, flat year on year. This print missed analysts' expectations by 3.7%. Aside from that, it was a strong quarter as it produced an impressive beat of analysts' EPS estimates and a solid beat of analysts' adjusted operating income estimates. Custom Truck One Source delivered the highest full-year guidance raise among its peers. The stock is up 7.7% since reporting and currently trades at $4.31. Read our full, actionable report on Custom Truck One Source here, it's free. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here. Sign in to access your portfolio
