Hertz Global Holdings, Inc. (HTZ) stock is soaring 27.70% in Tuesday's trading session following the release of its impressive third-quarter financial results. The car rental giant has demonstrated a significant turnaround, beating analyst expectations and marking its first profit in nearly two years.

For the third quarter, Hertz reported earnings per share (EPS) of $0.42, with adjusted EPS coming in at $0.12, significantly surpassing the analyst consensus estimate of $0.02. The company's revenue reached $2.48 billion, exceeding the forecasted $2.40 billion despite a 3.8% year-over-year decline. Hertz posted a net income of $184 million, swinging from a loss in the same period last year.

The strong performance was attributed to Hertz's ongoing transformation efforts, which have led to record utilization rates of over 84% and improved operational efficiency. The company's strategy of revamping its vehicle fleet and focusing on used vehicle sales has paid off, with the percentage of fleet sold via retail channels increasing by 570 basis points compared to the first nine months of 2024. Additionally, Hertz has successfully reduced its depreciation per unit per month to $273, aligning with company targets and contributing to the improved financial results. CEO Stephen Scherr stated, "Our transformation is driving record utilization and a return to EPS profitability, positioning Hertz for sustainable growth in the evolving mobility landscape." As the market digests these results, investors are showing renewed confidence in Hertz's ability to navigate the challenges in the car rental industry and deliver strong financial performance.