Latest news with #GilWest
Yahoo
03-07-2025
- Automotive
- Yahoo
The 5 Most Interesting Analyst Questions From Hertz's Q1 Earnings Call
Hertz's first quarter results fell short of Wall Street's expectations, with revenue and adjusted earnings per share coming in below consensus. The market responded negatively, reflecting concerns about persistent demand pressures and execution risk around the company's ongoing transformation. Management attributed the quarterly performance to a deliberate strategy of reducing fleet capacity and rotating into a younger, lower-cost fleet, as well as temporary disruptions from early vehicle deliveries to avoid tariffs. CEO Gil West described the timing of new vehicle intake as 'suboptimal at the local market level, impacting utilization and pricing,' but maintained that these actions were necessary for long-term improvement. Is now the time to buy HTZ? Find out in our full research report (it's free). Revenue: $1.81 billion vs analyst estimates of $2.03 billion (12.8% year-on-year decline, 10.5% miss) Adjusted EPS: -$1.12 vs analyst expectations of -$0.98 (14.6% miss) Adjusted EBITDA: $320 million vs analyst estimates of -$247 million (17.7% margin, significant beat) Operating Margin: -13.5%, up from -21.6% in the same quarter last year Sales Volumes fell 8% year on year (9.1% in the same quarter last year) Market Capitalization: $2.18 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Ian Zaffino (Oppenheimer) asked about local market overfleeting due to early vehicle deliveries and residual value trends in retail versus wholesale channels. CEO Gil West clarified that overfleeting was a temporary, market-level issue, and retail channels are achieving stronger residual values. John Babcock (Bank of America Merrill Lynch) inquired about fleet acquisition timing, tariff exposure, and the balance between cost cutting and customer experience. West and Chief Commercial Officer Sandeep Dube emphasized that most new vehicles were secured before tariffs and that technology is being used to improve both efficiency and service quality. Chris Woronka (Deutsche Bank) probed the strategy behind shrinking the fleet and shifting demand mix, as well as the potential for further per-unit depreciation improvements. West and Haralson confirmed that a tighter fleet and selective customer targeting aim to boost margins, with further depreciation gains possible but subject to market volatility. John Healy (Northcoast Research) asked about the composition of depreciation gains and rate environment pressures given reduced industry fleet sizes. CFO Haralson explained that most of the sub-$300 depreciation per unit is driven by the new fleet, with gains from vehicle sales supplementing results. Dan Levy (Barclays) questioned the path to EBITDA breakeven in the second quarter and the cadence for achieving 'North Star' targets. Dube responded that ongoing mix improvements and utilization gains are expected, though rate recovery will depend on macro trends and seasonal demand stabilization. Looking ahead, the StockStory team will be monitoring (1) whether Hertz can sustain cost reductions and improve utilization rates as the fleet mix evolves, (2) the effectiveness of new revenue management systems and technology partnerships in driving margin expansion, and (3) how the company navigates macroeconomic headwinds—particularly in corporate and government segments. The pace of recovery in used car residual values and progress on deleveraging will also be important signposts. Hertz currently trades at $7.02, in line with $6.97 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
Yahoo
13-06-2025
- Automotive
- Yahoo
Hertz CEO at Le Mans: EVs, Autonomy, and What's Next
Matt Miller sat down with Gil West, the CEO of Hertz, to talk about the company's golden performance at Le Mans, how the company is moving past its Tesla EV fire sale and when he expects autonomous driving to hit the main road. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
13-06-2025
- Automotive
- Bloomberg
Hertz CEO at Le Mans: EVs, Autonomy, and What's Next
Matt Miller sat down with Gil West, the CEO of Hertz, to talk about the company's golden performance at Le Mans, how the company is moving past its Tesla EV fire sale and when he expects autonomous driving to hit the main road. (Source: Bloomberg)
Yahoo
31-05-2025
- Business
- Yahoo
Hertz Global Holdings, Inc. (HTZ): A Bull Case Theory
We came across a bullish thesis on Hertz Global Holdings, Inc. (HTZ) on Bill Ackman on X (Twitter). In this article, we will summarize the bulls' thesis on HTZ. Hertz Global Holdings, Inc. (HTZ)'s share was trading at $7.05 as of 23rd May. HTZ's trailing and forward P/E were 23.71 and 11.78 respectively according to Yahoo Finance. nito/ Hertz presents a compelling investment opportunity as both an operating company and a highly leveraged portfolio of automobiles. After acquiring a 19.8% stake, investors highlight four key drivers for value creation: an improving car rental industry structure marked by more rational competition, resolution of Hertz's overexposure to Teslas which had previously caused operational and residual value issues, a promising operational turnaround led by CEO Gil West and his experienced management team, and the company's leveraged capital structure. The U.S. car rental market is a tight oligopoly dominated by Enterprise, Avis, and Hertz, with improving pricing discipline and strong profit potential demonstrated by Enterprise's 20%+ margins. Hertz is actively rotating its fleet, shedding higher-cost vehicles to reduce depreciation expenses, increasing unit revenues, and cutting operating costs, all of which should drive meaningful margin expansion over the next several years. Despite current leverage, the company's debt largely matures in 2028 and 2029, and Hertz has ample liquidity and financing capacity to support its fleet refresh and obligations. The firm's 500,000-car fleet valued at roughly $12 billion is well-positioned amid rising used car prices driven by tariffs, potentially boosting asset value by over $1 billion—half the current market cap. Management's near-term targets imply adjusted EBITDA of about $2 billion by 2029, which at a conservative 7.5x multiple suggests a $30 per share valuation. While near-term results face headwinds from tariffs and travel industry softness, the intermediate outlook is for sustainably higher profits. A potential partnership with Uber on autonomous vehicle fleets could further unlock value, leveraging Hertz's scale and infrastructure. Although risks remain, this thesis points to significant upside potential. Hertz Global Holdings, Inc. (HTZ) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held HTZ at the end of the fourth quarter which was 30 in the previous quarter. While we acknowledge the risk and potential of HTZ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than HTZ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey.
Yahoo
30-05-2025
- Business
- Yahoo
Hertz Global Holdings, Inc. (HTZ): A Bull Case Theory
We came across a bullish thesis on Hertz Global Holdings, Inc. (HTZ) on Bill Ackman on X (Twitter). In this article, we will summarize the bulls' thesis on HTZ. Hertz Global Holdings, Inc. (HTZ)'s share was trading at $7.05 as of 23rd May. HTZ's trailing and forward P/E were 23.71 and 11.78 respectively according to Yahoo Finance. nito/ Hertz presents a compelling investment opportunity as both an operating company and a highly leveraged portfolio of automobiles. After acquiring a 19.8% stake, investors highlight four key drivers for value creation: an improving car rental industry structure marked by more rational competition, resolution of Hertz's overexposure to Teslas which had previously caused operational and residual value issues, a promising operational turnaround led by CEO Gil West and his experienced management team, and the company's leveraged capital structure. The U.S. car rental market is a tight oligopoly dominated by Enterprise, Avis, and Hertz, with improving pricing discipline and strong profit potential demonstrated by Enterprise's 20%+ margins. Hertz is actively rotating its fleet, shedding higher-cost vehicles to reduce depreciation expenses, increasing unit revenues, and cutting operating costs, all of which should drive meaningful margin expansion over the next several years. Despite current leverage, the company's debt largely matures in 2028 and 2029, and Hertz has ample liquidity and financing capacity to support its fleet refresh and obligations. The firm's 500,000-car fleet valued at roughly $12 billion is well-positioned amid rising used car prices driven by tariffs, potentially boosting asset value by over $1 billion—half the current market cap. Management's near-term targets imply adjusted EBITDA of about $2 billion by 2029, which at a conservative 7.5x multiple suggests a $30 per share valuation. While near-term results face headwinds from tariffs and travel industry softness, the intermediate outlook is for sustainably higher profits. A potential partnership with Uber on autonomous vehicle fleets could further unlock value, leveraging Hertz's scale and infrastructure. Although risks remain, this thesis points to significant upside potential. Hertz Global Holdings, Inc. (HTZ) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held HTZ at the end of the fourth quarter which was 30 in the previous quarter. While we acknowledge the risk and potential of HTZ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than HTZ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Sign in to access your portfolio
