(MENAFN- Baystreet.ca)
Hertz up as Profits Soar Hertz (NASDAQ: HTZ) stock gained sharply Tuesday's on stronger than expected quarterly profits and the projection of sustained travel demand.
The car rental company reported $0.50 in adjusted earnings per share for Q4, $0.03 above analyst expectations. Meanwhile, a 4.6% rise in revenue from the prior year to $2.04B met expectations.
'Our strong results in the fourth quarter and record performance last year reflect a commitment to customers - from leisure and corporate travelers to ride share drivers. With a focus on asset return and risk management, we showed better operating performance, more disciplined fleet management and a commitment to financial returns,” CEO Stephen Scherr said.“Our team delivered on renewed demand for travel, which is continuing.”
Operating cash flow was $277 million for the quarter. Fleet capex of $312 million was a source of cash in the fourth quarter, driven by fleet rejuvenation and seasonal defleeting. As a result, adjusted free cash flow was $424 million , reflecting a 137% conversion from Adjusted Corporate EBITDA. The Company acquired 19 million shares, or 6% of its common stock, during the quarter.
In December 2022 , the Company amended its European ABS facility to add the fleet in Italy , increase aggregate maximum borrowings to €1.1 billion and extend the maturity from October 2023 to November 2024 .
During the fourth quarter 2022, the Company repurchased 19 million shares for $315 million and has over $1.1 billion remaining under the Board's authorization.
Shares of the Florida-based auto rental company spiked 82 cents, or 4.6%, to $18.50.
MENAFN07022023000212011056ID1105537712
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.