April 27 (Reuters) – Hertz Global Holdings Inc (HTZ.O) on Thursday beat analyst estimates for quarterly results as more people rented cars to commute to office and travel outstation, sending the company’s shares up nearly 4% before the bell.
Demand for rentals remains strong as more companies mandate work from office and people resume their travel plans after a long pandemic-induced hiatus.
“Hertz reported better-than-expected results as they continue to benefit from strong consumer demand for travel and the ongoing recovery in business travel,” said Tigress Financial Partners analyst Ivan Feinseth.
The company posted an adjusted quarterly net income of 39 cents per share for the quarter ended March 31, compared with Refinitiv IBES estimates of 21 cents.
While its overall revenue rose 13% to $2.05 billion. Analysts had expected revenue of $2.033 billion.
The company also benefited from price hikes on one-way rentals amid flight disruptions in the U.S. last year, as more people opted to hire vehicles and get to their destination on time.
Demand for Hertz’s rental services was also helped by the company’s EV (electric vehicle) fleet as consumers looking to purchase a car with an alternate powertrain opted to rent those vehicles before deciding to purchase them, Feinseth added.
Hertz, which offers Tesla Inc’s (TSLA.O) vehicles for hire, has been beefing up its EV fleet over the past few years, as part of its move to promote zero-emission models.
It, however, struggled with costlier maintenance and labor charges to keep its fleet on the road.
