What Happened?
Shares of equipment rental company Herc Holdings (NYSE:HRI) jumped 12.3% in the afternoon session after the company reported third-quarter earnings results that blew past analysts' revenue expectations. Notably, the top line outpaced overall industry growth on both a total rental revenue basis and from an organic revenue perspective, which is encouraging. The results were achieved amid tough comps relative to the previous year and a high interest rate environment, which impacted rental revenue. On the other hand, its EPS missed. Overall, we think this was a decent quarter, with some key metrics above expectations.
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What The Market Is Telling Us
Herc’s shares are very volatile and have had 22 moves greater than 5% over the last year. But moves this big are rare even for Herc and indicate this news significantly impacted the market’s perception of the business.
Herc is up 29.9% since the beginning of the year, and at $192.27 per share, has set a new 52-week high. Investors who bought $1,000 worth of Herc’s shares 5 years ago would now be looking at an investment worth $4,077.
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