Herc Holdings Inc. (HRI), a leading equipment rental supplier, saw its stock plummet 5.04% in pre-market trading on Thursday, following the release of its fourth-quarter 2024 financial results.

For the quarter ended December 31, 2024, the company reported:

• Revenue of $951 million, beating analysts' expectations of $924.28 million.
• Adjusted earnings per share (EPS) of $3.58, missing the consensus estimate of $3.94.
• A net loss of $46 million, or $1.62 per share, driven by a loss on Cinelease assets held for sale.

Despite the revenue growth of 14.4% year-over-year, Herc Holdings' profitability was impacted by several factors, including higher operating costs, increased depreciation expenses, and the loss related to the planned sale of its Cinelease studio entertainment business.

The company's CEO, Larry Silber, acknowledged the challenging market conditions but highlighted Herc Holdings' ability to deliver record results for the full year 2024. He also expressed optimism about the company's strategic initiatives and long-term growth prospects.

Looking ahead, Herc Holdings provided guidance for the full year 2025, excluding the Cinelease business:

• Equipment rental revenue growth of 4% to 6%
• Adjusted EBITDA between $1.575 billion and $1.650 billion
• Net rental equipment capital expenditures of $400 million to $600 million
• Gross capital expenditures of $700 million to $900 million

The company expects to capitalize on new government policies and spending initiatives, which could expand opportunities for the equipment rental industry.