With the economy improving modestly, major companies are looking
to recruit the optimum number of employees required to operate
effectively. As per the U.S. Department of Labor, the employment to
population ratio increased to 58.6% in May 2012 compared with 58.4%
in the comparable prior-year period.
In order to improve customer service,
Hertz Global Holdings, Inc.
), engaged in vehicle and equipment rental operations, plans to
recruit hundreds of employees at its equipment rental division,
Hertz Equipment Rental Corporation (HERC) this summer.
The company further looks to organize a two-day open house
employment program over 50 HERC locations on June 26, 2012 and June
27, 2012. Further information about the open house session is
available on the company's website.
HERC is one of the largest equipment rental operators in the United
States with a diversified portfolio. The company expects HERC's
revenue to grow at the rate of 15% year over year in fiscal year
Moreover, HERC completed the acquisitions of Cinelease and
Arpielle in the first quarter of 2012, and management believes that
the acquisitions have already started paying off through
incremental revenue growth, which led to increased profits.
AVIS BUDGET GRP (CAR): Free Stock Analysis
HERTZ GLBL HLDG (HTZ): Free Stock Analysis
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As a result, in order to sustain sales growth, management intends
to recruit more employees. Management expects that the recruitment
program will drive higher level of customer satisfaction.
Hertz, which competes with
Avis Budget Corp Inc.
), recently posted better-than-expected first-quarter 2012
earnings. The earnings of 5 cents per share marked a substantial
improvement from a loss of 3 cents in the comparable prior-year
quarter. Moreover, reported earnings surpassed the Zacks Consensus
Estimate of 4 cents a share.
Total revenue came in at $1.96 billion, jumping 10.2% year over
year, and reflecting sales increases of 9.8% and 12.6% across car
rental and equipment rental segments, respectively.
Buoyed by better-than-expected results, management provided upbeat
guidance for 2012. Management now expects revenue of between $8.9
billion and $9.0 billion, up from the range of $8.85 billion to
$8.95 billion forecasted earlier. Earnings are now projected at
between $1.28 and $1.38 per share versus previous expectations of
$1.16 to $1.26.
Modest economic recovery, new market opportunities, cost
containment efforts and improving trends in the equipment rental
business imparts a short-term Zacks #1 Rank on the shares, implying
Strong Buy rating for 1-3 months. This correlates with our
long-term Outperform recommendation.