Herc Holdings Inc (NYSE:HRI) shares are trading higher after the company reported first-quarter FY24 sales growth of 9% year-on-year to $804 million, beating the analyst consensus estimate of $782.85 million.
The revenue climb was due to an increase in equipment rental revenue of $65 million, reflecting positive pricing of 5.1% and increased volume of 8.0%.
Total expenses for the quarter increased 8.7% to $723 million. Adjusted EBITDA increased 10%, with the adjusted EBITDA margin expanding to 42.2%.
Adjusted EPS of $2.36 beat the analyst consensus estimate of $2.15.
Herc held $63 million in cash and equivalents as of March-end, with a total fleet of approximately $6.4 billion at OEC. Operating cash flow for the quarter totaled $240 million, and the free cash flow was $92 million.
"We are off to a strong start in 2024, achieving record first-quarter revenue and adjusted EBITDA margin as we continue to capitalize on key growth markets, like semiconductor, data centers, renewables and public infrastructure, while also investing in our network scale through greenfields and acquisitions, and elevating our higher-return specialty product lines," said President and CEO Larry Silber.
Outlook Reaffirmed: Herc affirmed its annual performance targets, excluding Cinelease, of 7-10% year-over-year equipment rental revenue growth and adjusted EBITDA of $1.55 billion to $1.60 billion for 2024.
Price Action: HRI shares are trading higher by 3.27% at $153.26 on the last check Tuesday.