Herc Holdings Inc (NYSE: HRI) shares are soaring 5.92% in pre-market trading on Wednesday following the release of its first quarter 2025 results. The equipment rental company demonstrated resilience in a challenging environment, with performance largely meeting expectations despite some headwinds.

Herc reported equipment rental revenue growth of approximately 5% for the quarter, excluding its Cinelease business which is currently held for sale. This growth was driven by strong performance in national accounts and mega projects, which helped offset weakness in local markets due to prolonged elevated interest rates. The company also faced some temporary challenges from unusually cold weather in southern states during January and February, which caused some branch closures and impacted daily and weekly local rentals.

Despite these obstacles, Herc's management maintained its full-year guidance, indicating confidence in the company's outlook. During the earnings call, CEO Lawrence Silber highlighted the strength of Herc's diversified business model and its ability to capture opportunities in infrastructure and mega project development. The company is continuing to increase its specialty fleet investments to address growing demand in these areas.

While JP Morgan analysts cut their price target for Herc from $140 to $115 following the results, investors appear to be focusing on the company's ability to navigate current market conditions and its maintained guidance. The strong pre-market stock movement suggests that the market views Herc's performance and outlook positively, despite some near-term challenges in the local rental market.