Hertz Rises as Profit Beats Analysts’ Estimates: New York Mover
February 23, 2012, 12:14 AM ESTBy Mark Clothier
Feb. 22 (Bloomberg) -- Hertz Global Holdings Inc., the largest publicly traded U.S. auto-rental chain, rose the most in more than two months after reporting profit that exceeded analysts’ estimates as it lowered costs and boosted sales.
The shares rose 5.1 percent to $14.29 at the close in New York, the biggest gain since Dec. 16. They have risen 22 percent this year.
Fourth-quarter profit was $47.1 million, or 11 cents a share, compared with a loss of $28.1 million, or 7 cents, a year earlier, the Park Ridge, New Jersey-based company said in a statement today. Excluding some items, profit was 24 cents a share. Five analysts in a Bloomberg survey had, on average, estimated profit of 20 cents.
Sales rose 9.7 percent to $2.01 billion, compared with the $1.99 billion average of five analysts’ estimates. Operating expense as a portion of revenue fell to 52.5 percent from 56.4 percent in the quarter.
Hertz said profit this year would be $1.16 to $1.26 a share, on sales of as much as $8.95 billion. Analysts were predicting profit of $1.22 a share on sales of $8.90 billion.
--Editors: Romaine Bostick, Niamh Ring
To contact the reporters on this story: Mark Clothier in Southfield, Michigan, at mclothier@bloomberg.net
To contact the editor responsible for this story: Jamie Butters at jbutters@bloomberg.net
