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Hertz stock jumps on earnings beat, announces $2 billion program

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Hertz shares are moving higher thanks to a boost in travel demand and higher used car prices.

Video Transcript

SEANA SMITH: Let's take a look at Hertz. It's a bit of a different story there. The stock is surging on strong earnings results, beating the Street's estimates, thanks to a boost in travel demand. Shares were up 17% earlier. Right now, up just about 16%. It's the biggest intraday jump that we've seen in the stock in more than eight months. Average rental car prices were up 7% from a year ago. Revenue for the quarter up 25% to $2.3 billion.

The company is also benefiting from higher used car prices because it helps Hertz get better prices on the cars that it sells as it rotates its fleet. Dave, no surprise here. Hertz has been a beaten down company, to say the least. So the stock today, the pop that we're seeing, we should put that in perspective. But still, a pretty strong quarter here from the company that has been struggling for quite some time.

DAVE BRIGGS: It was. It does, though, feel a little temporary because a lot of these patterns that we've seen, they've really benefited from revenge travel. But when we see that demand cool off into the fall, will we see that number come back down to Earth? And 70% is the number they've thrown out in terms of business travel returning. The thing we can't figure out, Seana, is that the peak? Is that 100% of the new norm? 70% pre-pandemic, it's not entirely clear that that's the ceiling for business travel to come back. It appears a lot of companies have made major and permanent cuts to their travel-- business travel budget.