- Herc Holdings Inc (NYSE:HRI) reported fourth-quarter revenue growth of 11.1% year-over-year to $578 million, missing the consensus of $582.69 million.
- Equipment rental revenue increased 26.9% Y/Y. Dollar utilization rose to 44.6% compared to 40.6% in the prior-year period. Pricing increased 3.5% Y/Y.
- Adjusted EPS improved to $2.46 from $1.35 in 4Q20, beating the consensus of $2.42.
- Adjusted EBITDA increased 31.1% Y/Y to $256.5 million, and margin expanded by 680 bps to 44.4%.
- As of December 31, 2021, the company's total fleet was ~$4.4 billion at OEC. The average fleet at OEC increased by 14.9% Y/Y in the quarter, and the average fleet age was 49 months.
- Herc Holdings generated cash from operating activities in FY21 of $744 million, compared to $610.9 million a year ago. Free cash flow was $213.7 million.
- Related: Herc Holdings Hikes Quarterly Dividend By 15%
- FY22 Outlook: Herc Holdings raised adjusted EBITDA outlook to $1.075 billion-$1.175 billion (prior expectation $1.05 billion-$1.15 billion) and affirmed the net capital expenditure guidance range of $820 million - $1.12 billion.
- Price Action: HRI shares closed higher by 4.54% at $174.22 on Wednesday.
