QUOTE AND NEWS
Benzinga  Aug 28  Comment 
In a report published Thursday, Morgan Stanley analyst Adam Jonas reiterated an Underweight rating on Hertz Global (NYSE: HTZ), but lowered the price target from $20.00 to $19.00. In the report, Morgan Stanley noted, “We are marking to market...
Benzinga  Aug 28  Comment 
On CNBC's Fast Money Halftime Report, Pete Najarian suggested that investors should consider buying Weatherford (NYSE: WFT). The stock jumped 3.1 percent on Wednesday and closed at $23.64. Mike Murphy thinks that Hertz Global (NYSE: HTZ) is a...
SeekingAlpha  Aug 26  Comment 
By Foggy Tom: Hertz (NYSE:HTZ) gives the appearance of cheapness based on results that overstate profitability and understate capital intensity. Meanwhile, the stock is at least 0.5x more expensive than normal based on P/S, reflecting anticipated...
New York Times  Aug 22  Comment 
The rental car company has been a perennial investor plaything. Maybe Uber could even be next, wonders Kevin Allison of Reuters Breakingviews.
DailyFinance  Aug 22  Comment 
Filed under: Company News, Bank of America, McDonald's, Earnings, Investing Mark Lennihan/AP There were plenty of winners and losers this week, with a car rental giant revealing that it will fall short of its earlier expectations and the leading...
SeekingAlpha  Aug 22  Comment 
By Orange Peel Investments: By Thom Lachenmann, OPI Hertz (NYSE:HTZ) has unfortunately gotten notorious for its horrendous customer service. Not too much seems to be going for the car rental giant of late. For those that travel on a weekly...
Forbes  Aug 21  Comment 
The war of words between Hertz Global Holdings and its shareholders continues to escalate.
TheStreet.com  Aug 21  Comment 
NEW YORK (TheStreet) --aHertz Globala rose Thursday after billionaire activist investoraCarl Icahnadisclosed he had taken an 8.5% stake in the car rental company andamay try for board representation. Icahn said in a regulatory filing he felt the...
StreetInsider.com  Aug 21  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/Hertz+Global+%28HTZ%29+Comments+Following+Icahn+Stake%2C+Calls+for+New+CEO/9773897.html for the full story.
Motley Fool  Aug 20  Comment 
An SEC filing from Hertz brings bad news for investors. A buying opportunity, perhaps, but I'd let the restatement play out first.




 

Hertz Global Holdings (NYSE: HTZ) is the world's largest worldwide airport general car rental brand, based on revenues.[1] The company rents cars and building equipment through its approximately 8,100 locations in approximately 145 countries. It is the only car rental company in all major European markets as well as the United States.[1] It is also the market share leader in airport car rental business by revenues.

The company's Hertz car rental brand commands the biggest piece of the U.S. airport car rental market, with an estimated 28% share. Through its HERC subsidiary, the company rents equipment ranging from earthmoving vehicles, material handling equipment, aerial and electrical devices, air compressors, pumps, generators, and more to primarily builders of non-residential property.

With the vast majority of its business derived from airport business across the globe, the company is highly dependent on the airline travel industry. Disruptions or shifts in travel, including terrorism, recessions or drops in disposable income leading to decreased vacationing and business travel can dramatically affect the financial results of the company.

Furthermore, because the company purchases the majority of its cars under special repurchase or guaranteed depreciation programs (whereby they can sell vehicles back to the manufacturers at a certain price) with Ford Motor Company (F) and General Motors (GM), they are subject to risks related to these manufacturers' financial troubles.

Financials

For 2009, Hertz posted total revenues of $7.1 billion, a substantial decrease from its 2008 revenues of $8.5 billion.[2] Despite this decrease in revenues, Hertz was able to decrease its net loss from $1.2 billion in 2008 to just $111 million in 2009. Most of this was a result of Hertz incurring a one time impairment charge of $1.16 billion in 2008.[2]

Business Segments

Hertz breaks its operations into two reportable segments: i) Car Rental, and ii) Equipment Rental.

Car Rental (82.4% of 2009 Revenues)

The car rental segment is the segment that rents out cars that Hertz either owns or leases. In 2009, roughly 67% of its total worldwide car rental revenues came from airport locations.[3] In 2009, this segment earned $6.0 billion in total revenues.[4]

Low cost services Europe

In Europe the 85% of tourist travel in low cost airlines and rent the cheapest offer. Low cost rental companies are growing very fast thanks to the promotions 30% of discounts in average. They can make money with such prices adjusting structure costs, outsourcing everything and small sales network being just in best airports.

Equipment Rental (17.6% of 2009 Revenues)

Hertz operates its equipment rental segment under its HERC subsidiary. HERC is one of the largest equipment rental companies in the United States, and it rents a broad range of earthmoving equipment, materials handling equipment, aerial and electric equipment, among others.[3] In 2009, this segment posted total sales of $1.1 billion.[4]

Trends and Drivers

Airline Travel

Over 70% of the company's car rental business comes from airline travelers who rent vehicles upon reaching their airport destination. This benefits Hertz, as its brand has the largest market share and substantial brand recognition at airports. During periods of heavy traveling and vacationing, the company benefits from the tailwinds of increased traffic at its airport locations. Conversely, disruptions to travel, including terrorist attacks, natural disasters, or recessions (during which consumers and businesses cut spending on non-essential travel and vacation) adversely affect the company's bread-and-butter car rental business.

read more Related Posts:enterprise car bb Blog Archive bb How to Choose a Good Car Rental Why I Will Never Rent a Car from Hertz AgainHertz Car Rental – What People Like About Hertz Car RentalHertz Rental Car Hertz Car Rental on what people likeBeach retanl burbank car retanl at vroomvroomvroom compare alamo avis Compare Burbank Car Rental at Alamo, Avis, Budget, Enterprise, Hertz, National and Thrifty for discount car retanl.. los angeles car retanl reviews Yelp is a fun and easy way to find, recommend and talk about what's great and not so great in San Francisco and beyond. Members share their favorite . notorious retanl car fee running on empty? the red tape Hertz last week announced it would stop charging car renters an arm and a leg for Any car retanl agency should be realistic about doing business in a place like . change of subject hot air and gas at the retanl car counter The clerk at the Alamo Rent-a-Car counter near the Los Angeles airport recently gave me the "well, it's your funeral, pal" look when I told him I preferred to return . coronado car retanls 135 businesses reviewed for Car Rental in Coronado on Yelp. Read about places like: Wheel Fun Rental, Dirt Cheap Car Rentals, National Car Rental, . bob the writer bob the molester the red tape About this blog. Corporate sneakiness. Government waste. Technology run amok. Outright scams. The Red Tape Chronicles is MSNBC.com's effort to unmask these 21st Century headaches and . bob wikipedia the free encyclopedia Bob is a common nickname for the given name Robert. It may refer to: Arts and Entertainment. Bob FM, a radio format in Canada and the U.S. Bob-omb, a character in the Nintendo . bob marley home the official site A tribute to the legendary Bob Marley exploring his life, music, and philosophy. Includes unseen photographs, essays, sound, video, and merchandise..

Rising oil prices

An increase in fuel prices has two adverse effects on the company. First, it directly discourage use of rental cars, since customers must fill the tank during the period they rent the vehicle. Second, it leads to drops in airline travel, which, as mentioned above, is a driving force of the company's business. Because the rental industry is so price competitive and because drivers will avoid frequent travel and driving given high oil prices, passing costs on to customers is difficult to impossible.

Non-residential construction levels

Hertz's equipment rental subsidiary, HERC, is dependent upon non-residential/commercial construction activity. Its product mix includes machinery and equipment that is largely used during construction activities. Drops in non-residential construction will hamper results at HERC as fewer construction projects means less demand for equipment rentals from Hertz. To a lesser degree, the recent declines in the U.S. housing market and in new home construction might put strain on HERC's business, though not as many residential projects use HERC's equipment.

Competition

The auto and equipment rental industries are highly competitive. The company's main car rental competitors are Avis Budget Group (CAR), Vanguard Brands, and Enterprise Rent-a-Car (the latter two are privately held). Generally, the company competes primarily with Avis and Dollar Thrifty for airline-related rental business, while Enterprise, which sports a larger car fleet and higher revenues, focuses more on off-airport business, including "loaners" and other travel.

In the equipment rental business, the competition is intense, highly fragmented, and frequently price competitive. HERC believes it is one of the preeminent rental operations in each of the market it competes in. Large competitors with comparable positions include:

Trends and Forces

Acquisition of Dollar-Thrifty

In September, 2010 Hertz (NYSE: HTZ) closed a deal to buy smaller car rental company and former competitor Dollar-Thrifty (NYSE: DTG). It managed to keep Dollar away from Avis (NYSE: CAR) which had topped Hertz’s earlier bid. Hertz new offer is for $43.60 cash plus 0.6366 a share for each share of Dollar Thrifty. The new offer adds $10.80 a share of cash to the deal price. This is deemed by the Dollar board to be better than the Avis $40.75 cash and 0.6543 per share incentive.[5]

References

  1. 1.0 1.1 HTZ 10-K 2009 Item 1 Pg. 3
  2. 2.0 2.1 HTZ 10-K 2009 Item 7 Pg. 64
  3. 3.0 3.1 HTZ 10-K 2009 Item 1 Pg. 5
  4. 4.0 4.1 HTZ 10-K 2009 Item 1 Pg. 6
  5. http://247wallst.com/2010/09/13/get-ready-for-avis-to-counter-hertz-bid-for-dollar-thrifty/
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki