On Tuesday after the bell, car rental firm Hertz, forecast quarterly profit above market estimates and said it sees no significant long-term financial impact from General Motors and Chrysler bankruptcies. The company also forecast a surprise full-year profit.
"Our car rental demand in the U.S. and Europe has stabilized and we are experiencing better-than-anticipated summer peak reservation build in both markets," Chief Executive Mark Frissora tells Fast Money.
Hertz, which is adding fleet, sees second-quarter earnings of 9 cents to 10 cents a share on an adjusted basis, and worldwide revenue of $1.70 billion to $1.75 billion. Analysts on average were expecting earnings of 3 cents a share, before special items, on revenue of $1.90 billion, according to Reuters Estimates.
Hertz expects U.S. car rental transaction days to improve year-over-year in the second quarter.
Its average car rental fleets for the second quarter are, however, expected to be 14.6 percent lower year-over-year in the United States and 17.3 percent lower in Europe.
For 2009, Hertz sees adjusted earnings of 12 cents to 15 cents a share, while analysts were looking for a loss of 21 cents a share, before items.
Learn more about this company. Check out our exclusive interview with Hertz CEO Mark Frissora. Watch the video now!
