CreditSights logo
Forgot Password?


Hertz is now the #2 car rental company behind #1 Enterprise and ahead of #3 Avis with growing interests in fleet management via its Donlen subsidiary. Herc Rentals was separated into a stand-alone entity (the legacy entity) in connection with the mid-2016 spin-off transaction of car rental. For accounting purposes, Herc was treated as the "spinee," but the car rental entity was legally spun off. Consolidation of car rental through M&A includes the $2.3 bn Dollar Thrifty deal by HTZ ( Nov 2012), Avis and Zipcar (2013), the Avis Europe franchise (2011), and National and Alamo by Enterprise in Aug 2007. Hertz has major exposure to leisure and corporate travel but is growing increasingly intertwined with the broader integrated mobility solutions market across rapidly growing ride-hailing servics (e.g. Uber, Lyft) and car sharing (e.g. Zipcar, owned by Avis). Fleet management services provided by Hertz could grow in value as the markets see increased use of Autonomous Vehicles and Electric Vehicles and strategic players in that chain (OEMs, Tech, service providers) seek to expand global feet penetration of such emerging technologies. (05 Sep 2018)

Search Results

Excerpts only. To access full content please login or request a free trial.

US Inflation: Goods Inflation Is Back

Sector Analysis: 12 Dec 2018, 11:57 PM ET - Headline and core indexes both increased in line with expectations.  We highlight the first bought of YoY core goods inflation since 2016 and anecdotes of margin pressure from the most recent Beige Book.

US Employment: Modest Gains for Jobs & Wages

Sector Analysis: 09 Dec 2018, 9:01 PM ET - Payrolls and wages both took a step back in November.  We highlight this months employment data and discuss the possibility for manufacturing, construction, and mining employment to lead a 2019 deceleration in jobs growth.

US Income & Spending: Strong Start to 4Q Spending

Strategy Analysis: 30 Nov 2018, 4:37 AM ET - October consumer data delivered above expectations with strong real spending, solid income, and soft inflation.  We dig into the details and highlight strong growth in discretionary spending categories.

Consumer Pulse: Holiday Sales Update & More

Sector Analysis: 28 Nov 2018, 4:11 AM ET - Consumer holiday spending viewed through the e-commerce lens looks to be off to a strong start. The consumer economy has a mix of puts and takes, ranging from rising mortgage rates to falling prices at the pump.

Hertz: Conference Call Follow-up

Earnings Note: 09 Nov 2018, 3:45 PM ET - The bulk of the call showed the management enjoyment from being able to discuss a lot of good trends in its core US RAC operations. The move to positive free cash flow guidance was good news but they ducked the refi topic specifics.

Hertz 3Q18: Quick Look

Earnings Note: 08 Nov 2018, 6:48 PM ET - Hertz turned in a good 3Q18 off a weak comp and cleared a low bar of expectations. Given yields on HTZ, that is good enough to stay interesting. A big question is whether refinancing plans will be discussed on the call.

US Employment: Almost Full, Keeps Eating

Strategy Analysis: 05 Nov 2018, 5:16 AM ET - Employment growth bounced back in October with a strong 250k print.  Wage growth hit a new high, but its gradual acceleration coupled with the strong job growth trend makes us question what full employment looks like.

US Productivity Is A Small Offset To Labor Costs

Sovereign Analysis: 02 Nov 2018, 5:38 AM ET - We break down 2 separate pieces of 3Q economic data that show while labor costs continue to rise, controlling for productivity growth gives a rosier picture. 

PCE Deflator: Steady in September

Worth Watching: 29 Oct 2018, 10:19 PM ET - PCE Deflator: The September income & outlays report showed another mild month for consumer price gains. The headline all-items index increased by 0.1% MoM, bringing the YoY rate to 2.0%, down from its July peak of 2.3%. The core PCE deflator (e ..

US GDP: Consumers Show Up Again

Strategy Analysis: 29 Oct 2018, 5:06 AM ET - 3Q US GDP beat expectations with a strong performance by the US consumer, inventory growth, and government spending offsetting weak trade, residential investment, and capex.

US Inflation: Consumer Prices Eke Out Another Gain

Strategy Analysis: 11 Oct 2018, 10:35 PM ET - The September consumer price index report showed weaker price gains than expected for the second consecutive month. 

US Strategy: What to Watch for on 3Q Earning Calls

Strategy Analysis: 11 Oct 2018, 4:37 AM ET - We surveyed our analyst teams for key sector level issues they will be paying close attention to with upcoming third quarter earnings calls beyond the typical sales, margins and earnings guidance. 

US Employment: 3.0% Wage Growth on the Horizon

Strategy Analysis: 05 Oct 2018, 12:24 PM ET - September nonfarm payrolls disappointed on the headline number, but under the surface, the report was solid.  Wages posted another strong gain and are just one tick away from the 3.0% YoY milestone.

US Income & Spending: Consumption Stays On Track

Strategy Analysis: 01 Oct 2018, 6:11 AM ET - The August income & spending report contained another solid reading for consumer spending, continued income growth, and modest inflation. We dig into the pricing environment for a few discretionary spending categories.

US Employment: Finally, A Wage Growth Surprise

Strategy Analysis: 07 Sep 2018, 4:06 PM ET - The August employment report contained the long-awaited breakout in wage growth to a new cycle high. Payroll growth was also solid, and we highlight our outlook for it going forward.

US Income & Spending: Inflation Momentum Fading?

Strategy Analysis: 30 Aug 2018, 2:43 PM ET - July consumer spending and income increased largely as expected, providing a solid start to 3Q spending. The core PCE deflator hit the Fed’s 2.0% target. We highlight that the recent inflation data have cooled some from earlier this year.

Hertz: Conga Line

Earnings Note: 07 Aug 2018, 1:52 PM ET - Volatility in HTZ bonds continues with a big rally in HTZ stock and credit spreads as 2Q18 shows viability. HTZ offered up a numberless bar chart that almost looks like guidance. A day in the life of car rental bondholders is never dull.

Hertz 2Q18: Quick Look

Earnings Note: 06 Aug 2018, 8:25 PM ET - 2Q18 Hertz numbers remain anemic but frame up well vs. the disaster of 1H17.  The earnings call will hopefully bring more color on liability management planning as HTZ shows it can lumber through its operational overhaul. 

Car Rental: Crossroads or Figure 8?

Sector Outlook: 06 Aug 2018, 11:13 AM ET - We frame key issues ahead of Hertz/Avis earnings week. Will 2018 provide a pause to get more critical execution risks addressed ahead of secular/cyclical pressure ahead? Do they get a 1-year reprieve on residual risk surprises?

Consumer/Pharma: Cross-Sector Rel Val Analysis

Sector Analysis: 19 Jul 2018, 4:27 AM ET - In this report, we juxtapose OAS and leverage levels across on-the-run non-cyclical credits in the F&B and Pharma space. M&A has elevated leverage for several names, so we aim to help investors find the best spread while managing risk.

Request A Free Trial

CreditSights offers free trials to individuals in qualified institutions.

Sign up now >>


Refine Results