- Hertz Global Holdings reported stronger-than-expected second-quarter results, driving its stock price higher.
- The company significantly beat analyst estimates with an EPS of -$0.11 and revenue of $2.40 billion.
- Despite a negative P/E ratio and debt-to-equity ratio, Hertz maintains a healthy current ratio of 2.23.
Hertz Global Holdings (NASDAQ: HTZ) is a major car rental company that provides vehicles to travelers and businesses worldwide. Its stock price is rising after a report of better-than-expected results for the second quarter, as highlighted by Barrons. This strong performance creates a challenging situation for investors betting against the stock, known as short sellers.
On August 6, 2026, Hertz reported an earnings per share of -$0.11, which was a significant improvement over the consensus analyst estimate of -$0.24. The company also announced quarterly revenue of $2.40 billion. This figure surpassed the market's expectation of $2.27 billion for the period.
The $2.40 billion in revenue represents a 10% increase compared to the same quarter last year. According to a release by Businesswire, this revenue growth was driven by the company's strongest second-quarter Revenue per Day (RPD) on record. Additionally, Revenue per Unit (RPU) increased by 8% year-over-year.
Despite the positive report, Hertz has a negative trailing price-to-earnings (P/E) ratio of -1.75. A negative P/E ratio means the company has had negative earnings, or a net loss, over the past year. Its price-to-sales ratio is 0.06, showing how the market values its sales revenue.
The company's financial structure shows a negative debt-to-equity ratio of -29.85. This indicates that its total liabilities are greater than its shareholder equity. However, Hertz maintains a current ratio of 2.23, suggesting it has enough current assets to meet its short-term obligations.