In an attempt to enhance its operational activities, Hertz Global Holdings, Inc. (HTZ) yesterday announced that its equipment rental business arm, Hertz Equipment Rental Corporation has opened a new facility in Spokane Valley, Washington.
The new 25,000 square-foot facility will serve the needs of construction, industrial, government and do-it-yourself markets of the Spokane Valley and neighboring cities in Washington, Idaho and Montana. The location of the new facility also has Hertz Equipment Rental’s largest fleet network in the Pacific Northwest region of the United States.
Hertz Equipment Rental Corporation is a wholly owned subsidiary of Hertz Global, which is one of the world’s largest equipment rental services provider since 1965. The company provides a wide range of equipment and tools for rent as well as sale. It offers services on a daily, weekly, monthly and long-term rental basis in the United States, Canada, China, France, Spain and Saudi Arabia and has facilities in about 360 locations. The company is also engaged in the new and used equipment sale business.
Hertz Global is aggressively expanding its operations by opening facilities at new locations and collaborating with other companies to grow businesses. The latter measure was evident from the company’s yesterday 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 facilitate the increase 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.
In late Sep 2013, owing to weaker volumes in its largest business segment, Hertz Global lowered its outlook for fiscal 2013. The company now projects revenues for fiscal 2013 in the range of $10,800.0–$10,900.0 million, down from $10,850.0–$10,950.0 million forecasted earlier. Further, the company now expects adjusted earnings per share in the band of $1.68–$1.78 versus $1.78–$1.88 projected earlier.
Hertz Global currently carries a Zacks Rank #5 (Strong Sell). However, other stocks that are performing well in the business services sector and are worth a look include WNS (Holdings) Ltd. (WNS), comScore Inc. (SCOR) and PFSweb Inc. (PFSW). All of these carry a Zacks Rank #2 (Buy).