Feb 7 (Reuters) – Hertz Global Holdings Inc (HTZ.O) on Tuesday reported a better-than-expected quarterly profit, aided by strong demand for rental cars amid surging leisure travel and constrained production from automakers.
Shares of the company rose 3.8% in premarket trading.
The car rental industry, tied closely to airline traffic and hotel bookings, has benefited from pent-up desire to travel and explore after an easing of coronavirus restrictions even as inflation remains high.
However, companies like Ford Motor Co (F.N) and Tesla Inc (TSLA.O) last month slashed prices on some electric vehicle models in an aggressive discounting effort to retain market share and bring more buyers to the market.
“We look to our investments in electrification and technology to yield increasing operating leverage and improved returns,” Hertz Chief Executive Stephen Scherr said in a statement.
The company reported net income of $116 million for the quarter through December, compared with a loss of $710 million a year earlier.
