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Shares of the company rose 3.8% in premarket trading.
The car rental industry, tied closely to airline traffic and hotel bookings, has benefited from pent-up desire to travel and explore after an easing of coronavirus restrictions even as inflation remains high.
Rising costs and supply shortages faced by automakers have also made it even more unaffordable for car buyers in an uncertain economy.
However, companies like Ford Motor (NYSE:F) Co and Tesla (NASDAQ:TSLA) Inc last month slashed prices on some electric vehicle models in an aggressive discounting effort to retain market share and bring more buyers to the market.
“We look to our investments in electrification and technology to yield increasing operating leverage and improved returns,” Hertz Chief Executive Stephen Scherr said in a statement.
Hertz, which operates the Hertz, Dollar and Thrifty vehicle rental brands, posted an adjusted profit of 50 cents per share, ahead of the average analyst estimate of 46 cents, as per Refinitiv data.
The company reported net income of $116 million for the quarter through December, compared with a loss of $710 million a year earlier.
