Over the course of the past month the bankrupt car rental company Hertz Global Holdings (OTCMKTS:HTZGQ) has seen its stock soar by as much as 200% amidst a bidding war for its control. However, in addition to that, the stock has also got a significant boost as its performance in the first fiscal quarter reflected the turnaround in its business even though Hertz Global is trying to make an exit from bankruptcy.

The company managed to generated a profit of $190 million in the quarter, which worked out to earnings per diluted share of $1.21. In the year ago period, Hertz had suffered a massive loss of $356 million.

However, when adjustments were made with regards to one-time gains and spending, the losses for the quarter worked out to $52 million or $0.33 a share.

The revenues generated by the company for the period stood at $1.3 billion, which was lower than the $1.9 billion that it had generated in the same quarter in 2020. The company has managed to bring about this turnaround by cutting down its costs substantially and running an operation that is in line with the current demands.

On the reorganization front, the company also received a concrete proposal from the consortium led by Apollo Capital Management, Certares Opportunities LLC and Knighthead Capital Management LLC. The consortium is going to provide the necessary equity capital so that Hertz Global can make its exit from bankruptcy. The company has decided that the proposals sent in by this particular consortium are superior to the ones made by its existing sponsor.

The existing sponsor is a consortium led by Centerbridge Capital Partners LP, Dundon Capital Partners LLC and Warburn Pincus LLC. This is another major development for the long-term health of the company and has provided a significant lift to the overall sentiment about the future of Hertz Global.