Hertz Global Holdings Inc. reported a per-share profit for the second quarter of 72 cents, beating the consensus analyst forecast of 64 cents a share as the company managed through a period of weaker used-vehicle prices in the US.
Hertz said travel demand rose in the quarter as the company reported a rise in both transactions and utilization of its fleet. The company also saw depreciation of its cars nearly triple from a year ago to $195 a car per month. Rental companies and car dealers have been wrestling with a softening of used car markets, which has tumbled form near-record pricing a year ago and declined 11% in mid-July.
“Results for the second quarter were strong, reflecting continued high demand for our services and elevated levels of fleet utilization,” said Stephen Scherr, Chief Executive Officer of Hertz. “Our focus on asset returns continues to yield tangible results.”
The Estero, Florida, company said revenue rose 4% in the quarter to $2.4 billion. In recent quarter, Hertz has enjoyed a rebound toward pre-pandemic levels.
The company’s stock was down 2.5% as of 7:44 a.m. in pre-market trading.
