PREVIEW: Hertz accelerates heading into report due after the bell

Shares of Hertz HTZ.O up 2.8% at $6.91 and gaining for fourth straight session on Mon with rental car firm's Q1 results due after market close

Analysts on avg expect HTZ to post adj loss/sh of 97 cents, narrower than $1.28 loss a yr ago, on rev of $2 bln, down ~4% y/y, according to LSEG data

Hertz, which saw weak demand in 2024, missed Wall Street estimates in Q4 amid a vehicle fleet rotation aimed at normalizing depreciation costs

Over the course of two sessions on Apr 16 and Apr 17, HTZ shares more than doubled to $8.24 (from $3.65) after billionaire investor Bill Ackman disclosed his investment co Pershing Square recently accumulated nearly 20% stake

Ackman previously said in a post on X he expects HTZ's efforts to increase unit rev and reduce operating cost will significantly improve profit margin over the next several years

Last week, rival Avis Budget Group CAR.O reported wider Q1 loss of $14.35/sh, compared to $3.21/sh a yr ago, as it recorded an anticipated $390 mln fleet charge after disposing of certain vehicles in its Americas segment, saying it does not expect further charges related to its fleet rotation strategy

Of 10 analysts covering HTZ, recommendation breakdown is 6 "hold" and 4 "sell" ratings; median PT is $3

As of May 12, short interest in HTZ shares is ~20% of float, per latest LSEG data