Will HTZ's Q1 2025 earnings beat forecasts?

**Hertz Global Holdings (HTZ) is likely to face challenges in exceeding earnings forecasts for Q1 2025.** Here's why: 1. **Expected Seasonal Loss in Q1 2025**: Hertz anticipates a seasonal loss in the first quarter of 2025, as indicated by their earnings call transcript. This is a common pattern for the company, reflecting typical seasonal trends in the car rental industry. 2. **Financial Performance Challenges**: Despite generating over $2 billion in revenue for Q4, Hertz faced an adjusted EBITDA loss. The company's financial performance has been impacted by factors such as increased insurance reserves and lease liabilities, which have affected profitability. 3. **Earnings Projection Insights**: Analysts forecast an EPS loss of $0.72 per share and revenue of $2.12 billion for Q1 2025, reflecting a decline of 3% compared to the previous year. This suggests that the company may not meet market expectations. 4. **Fleet Transformation and Cost Pressures**: Hertz is in the process of transforming its fleet, which has led to significant costs, including the reduction of 30,000 electric vehicles. These fleet adjustments are expected to continue impacting costs in the near term. 5. **Liquidity and Strategic Initiatives**: Despite these challenges, Hertz has a strong liquidity position with $1.8 billion and has completed a $500 million capital raise, providing financial flexibility. The company is also focusing on strategic initiatives like enhancing digital sales channels and expanding retail car sales, which could positively influence future performance. In conclusion, while Hertz has taken steps to address its financial and operational challenges, the expectation of a seasonal loss in Q1 2025 and the ongoing fleet transformation suggest that the company's earnings may not surpass current forecasts.