Hertz Q3 adjusted profit beats on higher off-airport car rentals
Nov 4 (Reuters) - Hertz Global Holdings Inc's quarterly adjusted profit beat analysts' estimates, helped by higher off-airport car rentals and strong performance of Dollar Thrifty, which it bought last year.
Hertz reaffirmed its reduced full-year forecast, however the car rental company said it is seeing an improvement in U.S. airport rentals in its Hertz brand, after the conclusion of the U.S. government shutdown in mid-October.
It had lowered its full-year earnings forecast in September as cuts in government spending hurt U.S. airport rentals.
The No. 2 U.S. car rental company also said it initiated a $300 million share repurchase program.
Hertz Global's adjusted net income rose to $337.7 million, or 73 cents per share, in the third quarter, from $280.3 million, or 63 cents per share, a year earlier.
On a GAAP basis, net income fell to $214.7 million or 47 cents per share, from $242.9 million or 55 cents per share, a year earlier.
Hertz, which primarily serves corporate customers, is also benefiting from the acquisition of smaller rival Dollar Thrifty - a big player in the leisure and lower-priced rental market.
Quarterly worldwide revenue rose 22 percent to $3.1 billion. U.S. car rental revenue rose 32.6 percent to $1.76 billion, primarily due to its acquisition of Dollar Thrifty.
Analysts on average were expecting quarterly earnings of 71 cents per share, excluding one-time items, on revenue of $3.06 billion, according to Thomson Reuters I/B/E/S.
Revenue from worldwide equipment rental for the third quarter rose 10.7 percent to $401.8 million.
The company's revenue per transaction day, an indicator of pricing, increased 2 percent in the United States and 2.9 percent overseas during the quarter ended Sept. 30.
Airport rentals account for about half of revenue at Hertz, the largest U.S. car rental company after privately owned Enterprise Holdings. Together with Avis Budget Group Inc , the trio control about 95 percent of the country's car rental market.
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