Yahoo Finance Hertz Global Holdings, Inc. Just Recorded A 10.0% EPS Beat: Here's What Analysts Are Forecasting Next
Hertz Global Holdings, Inc. (NASDAQ:HTZ) just released its first-quarter report and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 2.8% to hit US$1.8b. Statutory earnings per share (EPS) came in at US$0.82, some 10.0% above whatthe analysts had expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for Hertz Global Holdings
Taking into account the latest results, the consensus forecast from Hertz Global Holdings' seven analysts is for revenues of US$9.34b in 2022, which would reflect a notable 19% improvement in sales compared to the last 12 months. Per-share earnings are expected to soar 945% to US$3.85. In the lead-up to this report, the analysts had been modelling revenues of US$8.95b and earnings per share (EPS) of US$3.86 in 2022. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a slight bump in to revenue forecasts.
The analysts increased their price target 6.2% to US$29.43, perhaps signalling that higher revenues are a strong leading indicator for Hertz Global Holdings's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Hertz Global Holdings at US$36.00 per share, while the most bearish prices it at US$25.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that Hertz Global Holdings' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 26% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 7.7% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 7.9% annually. So it looks like Hertz Global Holdings is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Hertz Global Holdings going out to 2024, and you can see them free on our platform here.
Plus, you should also learn about the 2 warning signs we've spotted with Hertz Global Holdings .
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
