In a fresh boost to its operational activities, Hertz Global Holdings, Inc. (HTZ) yesterday announced that its equipment rental business arm, Hertz Equipment Rental Corporation has relocated the Williston, North Dakota operations to Missouri Ridge Commercial Park.
The new advanced facility spans 5.08 acres and has a 12,720 square-foot building. The facility will serve the needs of the oil fields located in North Dakota and northeastern Montana. It will also cater to the local commercial construction market.
We believe that the company’s latest move will help in boosting top-line growth, given the record level of oil and gas production in the region. Furthermore, oil, gas and construction companies are finding the lease of equipment more economic than their ownership.
Hertz Equipment Rental Corporation is a wholly owned subsidiary of Hertz Global, which is one of the world’s major equipment rental service providers since 1965. The company offers a wide range of equipment and tools for rent as well as sale. Its services are available on a daily, weekly, monthly as well as long-term rental basis in the United States, Canada, China, France, Spain and Saudi Arabia. Notably, the company has facilities in about 360 locations. Hertz Global is also engaged in the new and used equipment sale business.
The company is aggressively expanding operations by opening facilities at new locations and collaborating with other companies to grow business. The latter measure was evident from the last month announcement of a multi-year partnership agreement with Sentient Jet, a Directional Aviation Capital company.
As per the deal, the card holders of Sentient Jet will have the option to become members of Hertz Platinum. Apart from this, the members will have access to Hertz Dream Cars from 2014.
Hertz Global is the leading airport car rental brand in the United States. Of late, the company’s Hertz brand in the U.S. airport car rental market has been generating weaker volumes, thereby limiting revenue growth.
The partnership with Sentient Jet will likely benefit both the companies. For Hertz Global, the tie-up will enable expansion of its customer base and drive top-line growth. Sentient Jet, on the other hand, will be able to provide its members high quality services.
Earlier this month, Hertz posted better-than-expected third-quarter 2013 results, with adjusted earnings of 73 cents per share coming ahead of the Zacks Consensus Estimate by a couple of cents. The upbeat performance was backed by robust sales in its four principal businesses including U.S. off-airport car rental, Donlen, worldwide equipment rental and Dollar Thrifty, thereby giving it an incentive to expand its car rental business.
This leading airport car rental brand in the U.S. with presence at 120 major airports in Europe currently holds a Zacks Rank #3 (Hold). However, other better ranked stocks in the related industry include Command Center Inc. (CCNI), Odyssey Marine Exploration Inc. (OMEX) and Furmanite Corp. (FRM). While Command Center and Odyssey Marine have a Zacks Rank #1 (Strong Buy), Furmanite Corporation holds a Zacks Rank #2 (Buy).