Stock of the Day

December 7, 2022

Herc (HRI)

$124.25
+$1.14 (+0.9%)
Market Cap: $4.12B

About Herc

Herc Holdings Inc., together with its subsidiaries, operates as an equipment rental supplier. It rents aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction, and lighting equipment, as well as generators, and safety supplies and expendables; and provides ProSolutions, an industry specific solution based services, such as pumping solutions, power generation, climate control, remediation and restoration, and studio and production equipment. The company also sells used equipment and contractor supplies, such as construction consumables, tools, small equipment, and safety supplies; provides repair, maintenance, equipment management, and safety training services, as well as offers ancillary services, such as equipment transport, rental protection, cleaning, refueling, and labor. It serves non-residential and residential construction, specialty trade, restoration, remediation and environment, and facility maintenance contractors; industrial manufacturing industries, including automotive and aerospace, power, metals and mining, agriculture, pulp, paper and wood, food and beverage, and refineries and petrochemical industries; infrastructure and government sectors; and commercial and retail service, hospitality, healthcare, recreation, entertainment production, and special event management customers through its sales team, industry catalogs, as well as through participation and sponsorship of industry events, trade shows, and Internet. As of December 31, 2017, it operated approximately 275 locations in the United States, Canada, China, the United Kingdom, Saudi Arabia, and Qatar. Herc Holdings Inc. is based in Bonita Springs, Florida.

Today's Trend

Herc Holdings Inc. (NYSE: HRI) shares have decreased despite strong second-quarter results, suggesting investors may be weighing improved growth and guidance against valuation, leverage and earnings-quality concerns.

  • Herc reported second-quarter revenue of $1.20 billion, up 20.2% year over year, while adjusted earnings of $1.43 per share exceeded the $0.76 analyst consensus. Growth was supported by rental-rate gains, demand from large infrastructure projects and contributions from the H&E Equipment Services acquisition. Herc Holdings Q2 Earnings Top Estimates on Rental Growth, 2026 View Up
  • Management increased its full-year 2026 guidance after describing sequential and year-over-year improvement on a combined basis. H&E integration is generating revenue synergies, with incremental cost savings expected to reach approximately $125 million by year-end. Herc Holdings Reports Second Quarter 2026 Results and Increases 2026 Full Year Guidance
  • BNP Paribas Exane raised its price target from $160 to $165 but maintained a neutral rating. The target implies meaningful potential upside, although the unchanged rating signals limited conviction in near-term outperformance. BNP Paribas Exane Raises Herc Price Target
  • Second-quarter EPS declined from $1.87 a year earlier, despite the revenue increase, and Herc reported a net margin near breakeven. The company also carries elevated leverage, with a debt-to-equity ratio of approximately 4.24, which may be weighing on investor enthusiasm after a sharp rally since March. Herc Holdings Second-Quarter Earnings Report
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