NEW YORK (TheStreet) -- Shares of Hertz Global Hldgs (HTZ) were up 5.11% to $20.56 on heavy volume in late morning trading Friday, after the car rental company issued its 2015 first quarter operating results and updated metrics yesterday.
Hertz said car rental revenue fell 3% to $1.5 billion domestically, and declined by 9% to $436 million internationally, based on unaudited first-quarter results.
Looking ahead the company revised its fleet capacity plan and expects strong seasonal demand.
The company projects U.S. fleet capacity to increase 1.5% to 2.5% from a year ago, while international fleet capacity is expected to rise 1% to 2% compared with 2014.
Hertz said it would increase prices at its U.S. Hertz, Dollar and Thrifty brand locations, starting June 14.
The company will also close about 200 stores, representing 5% of the total off-airport locations and less than 1% of the vehicle fleet. The closures will result in approximately $10 million in annual savings.
MKM Partners analyst Christopher Agnew issued a note earlier today, pointing to a brighter outlook in the second half of 2015.
The firm said Hertz's updated first quarter metrics "were not unexpected." Revenue headwinds were disappointing, but several data points were "much better than feared."
Agnew kept a "buy" rating, and said shares of Hertz should be higher on this update.
MKM expects a strong comeback in 2016, but added that earnings will be muted.
"We are updating estimates to reflect FX headwinds, tougher 1H operating environment, weaker HERC and the revised fleet growth plans," the firm wrote.