Hertz Global Holdings Inc. on Thursday reported that its overall revenue rose 13 percent to $2.05 billion for the quarter ended March 31.
The company also posted an adjusted quarterly net income of 39 cents per share, compared with Refinitiv IBES estimates of 21 cents.
Demand for rentals remains strong as more companies mandate work from office and people resume their travel plans after a long pandemic-induced hiatus.
The company also benefited from price hikes on one-way rentals amid flight disruptions in the U.S. last year, as more people opted to hire vehicles and get to their destination on time.
“Hertz reported better-than-expected results as they continue to benefit from strong consumer demand for travel and the ongoing recovery in business travel,” Ivan Feinseth, Tigress Financial Partners analyst, said.
Demand for Hertz’s rental services was also helped by the company’s EV fleet as consumers looking to purchase a car with an alternate powertrain opted to rent those vehicles before deciding to purchase them, Feinseth added.
Hertz, which offers Tesla Inc.’s vehicles for hire, has been beefing up its EV fleet over the past few years, as part of its move to promote zero-emission models. It, however, struggled with costlier maintenance and labor charges to keep its fleet on the road.