Hertz Global Holdings, Inc. (NASDAQ:HTZ) Just Released Its Full-Year Earnings: Here's What Analysts Think

Shareholders might have noticed that Hertz Global Holdings, Inc. (NASDAQ:HTZ) filed its yearly result this time last week. The early response was not positive, with shares down 5.9% to US$4.05 in the past week. Revenues came in at US$9.0b, in line with expectations, while statutory losses per share were substantially higher than expected, at US$9.34 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Hertz Global Holdings

Following last week's earnings report, Hertz Global Holdings' eight analysts are forecasting 2025 revenues to be US$9.22b, approximately in line with the last 12 months. Losses are predicted to fall substantially, shrinking 87% to US$1.24. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$9.28b and losses of US$0.50 per share in 2025. So it's pretty clear the analysts have mixed opinions on Hertz Global Holdings even after this update; although they reconfirmed their revenue numbers, it came at the cost of a regrettable increase in per-share losses.

As a result, there was no major change to the consensus price target of US$3.39, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Hertz Global Holdings, with the most bullish analyst valuing it at US$4.45 and the most bearish at US$3.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Hertz Global Holdings' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 1.9% growth on an annualised basis. This is compared to a historical growth rate of 6.0% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.5% per year. Factoring in the forecast slowdown in growth, it seems obvious that Hertz Global Holdings is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$3.39, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Hertz Global Holdings going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Hertz Global Holdings that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.