Herc Holdings (HRI) saw its stock plummet 5.86% in pre-market trading on Tuesday following the release of its first-quarter 2025 earnings report. The equipment rental company reported unexpected losses and weaker-than-anticipated adjusted earnings per share, overshadowing a revenue beat.
Herc reported a net loss of $18 million, or $0.63 per share, for Q1 2025, a significant downturn from the $65 million profit, or $2.29 per share, recorded in the same quarter last year. The company's adjusted earnings per share came in at $1.30, falling well short of analysts' expectations of $2.26. This disappointing performance was primarily attributed to increased depreciation expenses and direct operating costs.
Despite the earnings miss, Herc's revenue showed growth, rising 7% year-over-year to $861 million, surpassing the consensus estimate of $849.44 million. However, investors seemed more focused on the company's bottom-line performance and future outlook. Herc's full-year guidance, projecting equipment rental revenue growth between 4% and 6%, raised concerns about potential challenges in demand, particularly noting that many interest-rate sensitive infrastructure projects remained on hold. This cautious outlook, combined with the unexpected quarterly loss, likely contributed to the sharp pre-market decline in Herc's stock price.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.