Hertz Global Holdings, Inc. (NASDAQ:HTZ) saw its stock surge 5.62% in after-hours trading on Monday, as investors eagerly await the company's first-quarter earnings report scheduled for release after the closing bell. The car rental giant's shares closed at $6.91 during regular trading hours before the significant jump.

The positive sentiment appears to be driven by two key factors. Firstly, analysts expect Hertz to report a narrower loss for Q1 2025, with consensus estimates projecting a loss of 98 cents per share, an improvement from the $1.28 loss per share reported in the same period last year. Additionally, the company is anticipated to post quarterly revenue of $2.01 billion.

Secondly, investor optimism has been bolstered by billionaire Bill Ackman's recent involvement in the company. Ackman's investment firm, Pershing Square, disclosed last month that it had accumulated a substantial stake of nearly 20% in Hertz. This move has sparked renewed interest in the stock, with Ackman expressing confidence in Hertz's potential for significant profit margin improvements over the coming years through increased unit revenue and reduced operating costs. The involvement of such a high-profile investor has likely contributed to the stock's recent momentum, including today's after-hours rally.