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Hertz Global Holdings, Inc. (NASDAQ:HTZ) just released its first-quarter report and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 2.8% to hit US$1.8b. Statutory earnings per share (EPS) came in at US$0.82, some 10.0% above whatthe analysts had expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for Hertz Global Holdings
Taking into account the latest results, the consensus forecast from Hertz Global Holdings' seven analysts is for revenues of US$9.34b in 2022, which would reflect a notable 19% improvement in sales compared to the last 12 months. Per-share earnings are expected to soar 945% to US$3.85. In the lead-up to this report, the analysts had been modelling revenues of US$8.95b and earnings per share (EPS) of US$3.86 in 2022. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a slight bump in to revenue forecasts.
The analysts increased their price target 6.2% to US$29.43, perhaps signalling that higher revenues are a strong leading indicator for Hertz Global Holdings's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Hertz Global Holdings at US$36.00 per share, while the most bearish prices it at US$25.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that Hertz Global Holdings' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 26% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 7.7% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 7.9% annually. So it looks like Hertz Global Holdings is expected to grow faster than its competitors, at least for a while.