Hertz Global (HTZ) shares skyrocketed more than 50% over two sessions, including a 29.49% gain on Thursday and a further 20% premarket jump Friday, after the rental-car giant reported second-quarter results that handily topped Wall Street estimates. The surge brought the stock to $2.42, recovering from a year-to-date plunge of around 60%. The rally was fueled by revenue of $2.4 billion, up 10% year-over-year and well above the $2.28 billion consensus, alongside an adjusted loss of $0.11 per share versus the $0.24 loss analysts had projected.
Revenue per day rose 9% to a record for any second quarter, driven by a 12% jump in U.S. airport rental revenue and steady commercial pricing initiatives. Fleet utilization improved 80 basis points to 79%, even as recall-related vehicle downtime tripled. CEO Gil West pointed to these improving fundamentals, calling the stock’s valuation "tough to understand" given that the market cap had fallen to one-third of its level just 90 days earlier while liquidity stood at $984 million after a $350 million notes offering.
However, several risks remain. Hertz carries total debt of around $14–$15 billion, mostly through asset-backed securities, leaving equity holders at the bottom of a deep capital stack. High interest rates keep net interest expenses elevated, and the company’s previous aggressive push into electric vehicles—and subsequent collapse in used-car residuals—still expose it to wholesale car market weakness. Wall Street remains cautious: Oppenheimer maintained a Perform rating, and the consensus rating is Underweight. Critics note that despite top-line momentum, Hertz printed an adjusted net loss of $0.11 per share in Q2, and returning to GAAP profitability hinges on peak summer travel. Q3 guidance calls for $275–$325 million in adjusted corporate EBITDA and positive earnings per share.
