Hertz Grows Q4 Revenues Amid Higher Expenses
Hertz reported record fourth quarter 2013 worldwide revenues while net income shrunk on lower pricing and higher fleet expense.
Hertz Global Holdings Inc. has reported a record fourth quarter 2013 worldwide revenues of $2.6 billion, an increase of 10.2% year-over-year. The adjusted net income in Q4 2013 was $121.1 million, compared to $139.1 million in the same period of 2012.
For the fourth quarter, U.S. car rental revenues increased 14.1% year-over-year to $1,476.3 million, says Hertz. This was primarily due to Dollar Thrifty, which was acquired on Nov. 19, 2012, and partially offset by the December 2012 divestiture of Advantage. For U.S. off-airport locations, total revenues for Q4 increased 9.8% year-over-year.
The U.S. average number of company-operated vehicles for Q4 was 472,200, an increase of 22.4% over the prior year period, largely due to the acquisition of Dollar Thrifty, says Hertz.
"In a difficult fourth quarter, we achieved an adjusted earnings per share of $0.26 despite an estimated $0.12 impact of lower than expected pricing and higher expenses related to carrying extra fleet," said Mark P. Frissora, Hertz’s chairman and chief executive officer. "However, 2013 was another record-setting year for Hertz on both revenues and profits. We achieved a fourth consecutive year of 20%+ adjusted pre-tax income and EPS growth in 2013, on revenues which increased 19.4%."
However, Hertz missed Wall Street analysts’ projected targets for earnings per share and revenue in the fourth quarter 2013, while Hertz has adjusted earnings per share below previous estimates for the first quarter in 2014 and full year.
For the full year 2013, Hertz’s worldwide revenue was $10.8 billion, an increase of 19.4% over the prior year. U.S. car rental revenues for the year increased 29.2% to $6.3 billion. Full year 2013 adjusted net income was $749.6 million, an increase of 27.3% from 2012, according to Hertz.
Hertz forecasts full year 2014 revenues in the range of $1.14 billion to $1.17 billion based on U.S. and International RAC revenue growth forecasted between 6% and 8% and 5% to 7%, respectively.
“In January and February, we were pleased with higher-than-anticipated Hertz U.S. RAC airport demand and pricing, attributable to two increases we instituted early last December, despite carrying extra fleet,” said Frissora. “Our 2014 guidance range reflects a balanced, current assessment of residual value risks, pricing and demand sensitivities. We intend to close the guidance range as the year unfolds."
Hertz also announced today that its board of directors has approved plans to separate the Hertz car and equipment rental businesses into two independent, publicly traded companies. Additionally, the Hertz Board approved a new share repurchase program totaling $1 billion.
More Rental Operations

European Booked Car Rental Rates Fell 5%, Results Varied by Country
Ireland, Cyprus, and the United Kingdom saw steep declines, while booked rates rose in Poland and Hungary.
Read More →Is It Time to Rethink Rental Categories?
As traditional economy and compact cars disappear from the market, longtime rental operator Mike DeLorenzo asks whether the industry’s familiar vehicle categories still make sense — and what operators need to rethink along with them.
Read More →
Who Owns the Rate? AI Is Creating a New Distribution Problem for Car Rental
Generative Engine Optimization asks whether AI can find a rental company, but operators also need to know whether the agent inspected enough of the market, compared equivalent offers, and presented a rate the traveler can actually book. (Part 1 of 2)
Read More →
U.S. Business Travel Car Rental Rates Forecast to Rise Up to 2%
Improved fleet supply should limit pricing gains in 2026-27, while insurance, repair costs, and softer residual values continue to pressure rental operations, according to Amex GBT.
Read More →
Sixt Revenue Tops $2.4 Billion in First Half of 2026
Sixt’s first-half revenue surpassed $2.4 billion for the first time as demand outpaced fleet growth, lifting utilization and earnings despite weaker consumer sentiment in North America.
Read More →
In Memoriam: Bobby Klyce, Avis Licensee Legend
The longtime Birmingham Avis operator and 2018 Auto Rental News Impact Award recipient was remembered as an advocate for independent licensees and the broader car rental industry.
Read More →How to Build Custom Fleet Tools With AI and Vibe Coding [Webinar]
A new Automotive Fleet webinar explores how fleet managers are using AI and vibe coding to automate routine work and create simple operational tools without traditional programming skills.
Read More →
Car Rental Rates Forecast to Rise 3.6% in 2026 Before Easing in 2027
Car rental rates are projected to rise less than airfares and hotel rates in 2026, then become the only major travel category forecast to decline in 2027, according to projections from GBTA and ALTOUR.
Read More →
Avis Cuts Fleet as Summer Demand Trails Expectations
Avis Budget Group increased second-quarter earnings despite lower Americas revenue and softer-than-expected summer demand. The company also expanded Avis First and advanced its autonomous fleet operations with Waymo.
Read More →
Why Bookings Are Only the Start of the Rental Day
A reservation captures demand. The operating test is whether the business can keep the customer, vehicle, commercial terms, and next action aligned until the rental is closed.
Read More →
