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What's in Store for Herc Holdings (HRI) in Q3 Earnings?

Higher equipment rental revenues are likely to have aided Herc Holdings' (HRI) top line in Q3.

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This story originally appeared on Zacks

Herc Holdings HRI is slated to release third-quarter 2021 results on Oct 21, before market open.

- Zacks

The transportation company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average being 120.4%.

Herc Holdings Inc. Price and EPS Surprise

Herc Holdings Inc. Price and EPS Surprise

Herc Holdings Inc. price-eps-surprise | Herc Holdings Inc. Quote

The Zacks Consensus Estimate for third-quarter earnings per share has increased 10.4% to $2.34 per share over the past 60 days.

Against this backdrop, let’s take a look at the factors that might have shaped the company’s September-quarter performance.

We expect Herc Holdings’ third-quarter 2021 performance to have been hurt by the Delta variant-led spike in COVID-19 cases (particularly in July) in the United States. Hurricane Ida-induced disruptions are also likely to have affected the company’s third-quarter performance.

However, with the COVID-19 cases receding and the economic activities reopening, third-quarter equipment rental revenues are rising again and the same is expected to have boosted the top line in the to-be-reported quarter. The company’s cost-control efforts are also likely to have aided its bottom line in the September quarter.

What Does the Zacks Model Say?

The proven Zacks model does not predict an earnings beat for Herc Holdings this time around. The combination of a positive  Earnings ESP  and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP:  Herc Holdings has an Earnings ESP of 0.00% as the Most Accurate Estimate is in line with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Herc Holdings sports a Zacks Rank of 1, currently.

Highlights of Q2 Earnings

Herc Holdings’ second-quarter earnings per share (excluding 2 cents from non-recurring items) of $1.57 beat the Zacks Consensus Estimate of $1.08. The bottom line also surged in excess of 100% year over year.

Stocks to Consider

Investors interested in the broader Transportation  sector may consider C.H. Robinson Worldwide CHRWKnight-Swift Transportation Holdings KNX and Landstar System LSTR as these stocks possess the right combination of elements to beat on earnings this reporting cycle.

C.H. Robinson Worldwide has an Earnings ESP of +1.06% and is Zacks #3 Ranked, presently. The company will release third-quarter 2021 results on Oct 26.

Knight-Swifthas an Earnings ESP of +1.33% and a Zacks Rank #2 at present. The company is scheduled to report third-quarter 2021 earnings numbers on Oct 20.

Landstar System has an Earnings ESP of +1.91% and is currently a #2 Ranked player. The company will release third-quarter 2021 results on Oct 20.



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