Hertz Global HTZ reported better-than-expected first-quarter 2026 results.
Quarterly adjusted loss came in at 72 cents per share compared with the Zacks Consensus Estimate loss of 76 cents, but increased 35.7% from the year-ago quarter.
Revenues of $2 billion beat the consensus estimate by 5.3% and increased 10.5% on a year-over-year basis, driven by continued progress in its commercial strategies, sustained pricing strength, with RPD up approximately 5.5% and transaction days up around 3%.
Hertz Global Holdings, Inc. Price, Consensus and EPS Surprise
Hertz Global Holdings, Inc. price-consensus-eps-surprise-chart | Hertz Global Holdings, Inc. Quote
The impressive results failed to impress the market, as the company’s shares have declined 1.9% since the earnings release on May 7.
Image Source: Zacks Investment Research
The company’s shares have depreciated 12.8% over the past year compared with the Transportation - Services industry’s 1.6% decline and the S&P 500’s 32% rise.
Adjusted EBITDA came in at a loss of $161 million, representing a $141 million year-over-year improvement. EBITDA margin improved 860 basis points to negative 8%.
Operating expenses increased 1.3% year over year to $2.3 billion. This surge was primarily due to Direct vehicle and operating expenses, which increased 6.7% year over year to $1.34 billion.
HTZ’s Key Balance Sheet and Cash Flow Figures
HTZ exited the first-quarter with a total cash and cash equivalents and restricted cash and cash equivalents balance of $1.2 billion compared with $1.17 billion in the December-end quarter of 2025. The company’s net cash provided by operating activities and free cash flow for the quarter were $20 million and $466 million, respectively.
HTZ’s 2026 Guidance
For the second quarter of 2026, the company expects EBITDA margin in the low- to mid-single-digit range. The days are anticipated to decline 2-3 percentage points year over year, while fleet is expected to be down about 1-2 percentage points.
HTZ expects full-year 2026 days to be likely up in the mid-single-digit range. Fleet is expected to be up low-single digit range year over year.
EBITDA margin guidance for the full year 2026 is projected between 3% and 6%.
Currently, HTZ carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q1 Performances of Other Transportation Companies
Delta Air Lines DAL reported first-quarter 2026 earnings (excluding $1.08 from non-recurring items) of 64 cents per share, which beat the Zacks Consensus Estimate of 61 cents. Earnings increased 39.1% on a year-over-year basis. Revenues in the March-end quarter were $14.2 billion, beating the Zacks Consensus Estimate of $14 billion and increasing on a year-over-year basis.
J.B. Hunt Transport Services JBHT posted first-quarter 2026 earnings per share of $1.49, up 27% from $1.17 a year ago. The result topped the Zacks Consensus Estimate by $0.04, reflecting a 2.8% surprise.
Operating revenues totaled $3.06 billion, rising 4.6% year over year. Revenues beat the consensus mark of $2.94 billion, resulting in a 3.9% surprise, as demand proved resilient across several service offerings, led by Intermodal volume growth and higher revenues per load in select highway-related businesses.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
Hertz Global Holdings, Inc. (HTZ): Free Stock Analysis Report
J.B. Hunt Transport Services, Inc. (JBHT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).