Herc Holdings Inc

Herc Holdings will announce its second-quarter earnings this Tuesday before the bell. The equipment rental company previously reported revenues of $1.14 billion last quarter, up 32.3% year on year, but its full-year revenue guidance missed analyst expectations significantly. For this quarter, the market expects revenue growth of 14.6% year on year, a slowdown from the 18.2% increase in the same quarter last year. Among peers in the industrial distributors segment, Richardson Electronics posted a 27.6% revenue gain and beat estimates by 19.6%, while United Rentals grew revenues 11.8% and topped estimates by 4.9%. Herc shares are up 11.1% over the last month, heading into earnings with an average analyst price target of $174.83 compared to the current share price of $162.59.

Herc Holdings reported first-quarter revenues of $1.14 billion, up 32.3% year on year and beating analyst estimates by 5.3%, making it the fastest-growing and biggest beat among the eight specialty equipment distributors tracked. The company completed the integration of its H&E acquisition, the largest in industry history, adding 25% more specialty locations and expanding its sales network. However, Herc issued full-year revenue guidance that missed expectations significantly, the weakest update in the group. Richardson Electronics posted the best overall quarter with a 4.4% revenue beat and strong EPS and EBITDA outperformance, while SiteOne Landscape Supply had the weakest results, missing revenue estimates by 4.2% and falling short on operating income and EPS. Custom Truck One Source delivered the highest full-year guidance raise among peers, and Hudson Technologies recorded the highest guidance raise but missed operating income and EPS estimates.