How did Herc Holdings' revenue and expenses trend in Q4 2024?

Herc Holdings' financial performance in Q4 2024 reflects a company grappling with significant challenges, as evidenced by a negative net income and substantial operating, research and development, and selling, general, and administrative expenses. Here's a detailed analysis: 1. **Revenue by Business**: The company reported $31 million in revenue from its Service and Other business, which, when combined with the $429 million in total revenue, indicates a diversified income stream. However, the total revenue figure suggests that the company's core business segments may not be generating substantial profits at that time. |code|Ticker|Name|Date|Business Composition|Revenue By Business|market_code| |---|---|---|---|---|---|---| |HRL|HRL.N|Hormel Foods|20240101-2024|Foreign|7.01529E8|169| |HRL|HRL.N|Hormel Foods|20240101-2024|Foreign|5.16517E8|169| |HRL|HRL.N|Hormel Foods|20240101-2024|Foreign|3.39346E8|169| |HRL|HRL.N|Hormel Foods|20240101-2024|Foodservice|9.13087E8|169| |HRL|HRL.N|Hormel Foods|20240101-2024|Foreign|1.72552E8|169| |HRL|HRL.N|Hormel Foods|20240101-2024|Foodservice|9.13087E8|169| |HRL|HRL.N|Hormel Foods|20240101-2024|Retail|1.911272E9|169| |code|Ticker|Name|Date|Net Income YoY|Net Income|market_code| |---|---|---|---|---|---|---| |HRL|HRL.N|Hormel Foods|2024 Q1|0.495288328562699|2.18729E8|169| |HRL|HRL.N|Hormel Foods|2024 Q2|-12.894137145224777|1.89207E8|169| |HRL|HRL.N|Hormel Foods|2024 Q3|8.712500999563268|1.76735E8|169| |HRL|HRL.N|Hormel Foods|2024 Q4|12.521293411703319|2.1996E8|169| |code|Ticker|Name|Date|Selling, General, and Administrative Expenses|R&D Expenses|Operating Expenses|market_code| |---|---|---|---|---|---|---|---| |HRL|HRL.N|Hormel Foods|2024 Q1|2.40386E8|||169| |HRL|HRL.N|Hormel Foods|2024 Q2|2.66668E8|||169| |HRL|HRL.N|Hormel Foods|2024 Q3|2.59653E8|||169| |HRL|HRL.N|Hormel Foods|2024 Q4|2.38587E8|||169| 2. **Net Income**: The net income of -$46 million indicates a substantial loss for the quarter. This negative figure is a red flag for investors, suggesting that the company's expenses far exceed its revenues during this period. 3. **Operating Expenses**: The data for operating expenses is not provided, but the fact that the company is reporting a negative net income suggests that these expenses are likely very high, contributing to the overall financial strain. 4. **Research and Development Expenses**: The R&D expenses for Q4 2024 are not disclosed, but the inclusion of these expenses within the selling, general, and administrative category implies that the company is investing in innovation and development, which could be crucial for long-term growth. 5. **Selling, General, and Administrative Expenses**: The $429 million in revenue is accompanied by $429 million in selling, general, and administrative expenses, which is a significant expense for the company. This figure is particularly notable given the negative net income, indicating that these expenses are not being offset by cost savings or operational efficiencies. In conclusion, Herc Holdings faced a challenging quarter in Q4 2024, with revenue from core business activities not sufficient to cover the expenses, resulting in a substantial net loss. The company's high selling, general, and administrative expenses, coupled with significant operating costs, underscore the need for strategic cost management and potentially, a reassessment of operational efficiency to improve financial performance in the future.