Published February 25, 2013
Hertz Global Holdings Inc reported a quarterly loss due to costs related to its acquisition of Dollar Thrifty, but adjusted profit beat analysts' expectations and the car rental company forecast strong results for 2013 on higher pricing.
Hertz forecast adjusted earnings of $1.82 to $1.92 per share for 2013 on revenue of $10.85 billion to $10.95 billion.
Analysts on average expect earnings of $1.78 per share on revenue of $10.79 billion, according to Thomson Reuters I/B/E/S.
Hertz is off to a "fast start" for the year, Chief Executive Mark Frissora said in a statement on Monday.
Car rental revenue per transaction day at U.S. airports was up 6.0 percent for Hertz and 2.6 percent for Dollar Thrifty in January, Frissora said.
Hertz acquired smaller rival Dollar Thrifty for $2.6 billion in late 2012 after agreeing to give up 29 Dollar Thrifty airport locations and sell its low-cost Advantage brand.
The acquisition is expected to save the merged company at least $160 million annually and cement Hertz's No. 2 position in the global car rental rankings behind privately held Enterprise Holdings.
Synergies from the acquisition are likely to exceed earlier forecasts, Hertz said.
Hertz's net loss was $36.4 million, or 9 cents per share, in the fourth quarter, compared with net income of $52.1 million, or 11 cents per share, a year earlier.
Excluding items, Hertz earned 33 cents per share.
Revenue rose 15 percent to $2.3 billion.
Analysts expected earnings of 31 cents per share on revenue of $2.27 billion.
(Reporting by A. Ananthalakshmi in Bangalore; Editing by Supriya Kurane and Roshni Menon)