Hertz Global Holdings Inc.'s (HTZ) third-quarter profit grew 18% as car and equipment rental sales each climbed.

Hertz has posted stronger sales for nearly three years as the company benefits from a pickup in business and leisure travel since the end of the recession, as well as from acquisitions.

The company's sales could soon be bolstered further by the pending acquisition of smaller peer Dollar Thrifty Automotive Group Inc. (DTG), if the companies are able to secure approval from the Federal Trade Commission. The deal would end a long takeover saga and consolidate the domestic industry to three major players.

Hertz recently gave the FTC more time to review the bid, saying it won't close the deal prior to Nov. 16 without consent of the FTC. Industry consolidation typically leads to regulatory questions about competitiveness and consumer pricing, and in anticipation of those concerns, Hertz has outlined a divestiture plan in an attempt to obtain FTC approval.

Before the earnings release, a Hertz spokesman said the company wouldn't grant interviews until after the Dollar Thrifty situation is resolved. But the issue will likely come up when Hertz hosts a conference call with analysts Thursday morning.

In the latest quarter, Hertz's smaller equipment rental business, which the company has been beefing up as it expands into new markets through acquisitions, continued to be a star performer. The unit's sales grew 13%--outpacing the larger car-rental segment's top-line improvement for the seventh consecutive quarter.

In the largest car-rental business, transaction days were up 3.4% as growth in the domestic market offset weakness abroad. Total car-rental revenue jumped 2.1% as domestic off-airport revenue jumped 4.1%, though global rental-rate revenue per transaction decreased 2.6%.

For the third quarter, Hertz reported earnings of $242.9 million, or 55 cents a share, up from $206.7 million, or 47 cents a share, a year earlier. Excluding restructuring-related charges and other impacts, adjusted earnings rose to 63 cents a share from 51 cents.

Revenue grew 3.4% to $2.52 billion, but would have risen 6.4% excluding the effects of foreign currency.

Analysts surveyed by Thomson Reuters expected a profit of 61 cents a share on revenue of $2.59 billion.

The average number of Hertz-operated cars was 703,200, up 5.3% from the prior year. The figure saw a lift last year after Hertz acquired Donlen Corp. to expand the services the company can offer its corporate customers.

Shares of Hertz, which affirmed its full-year targets, rose 1.8% to $13.51 in after-hours trading.

Peer Avis Budget Group Inc. (CAR) is due to release third-quarter results on Thursday. Hertz and Avis are based in northern New Jersey and both delayed their earnings report dates in the wake of Hurricane Sandy, which badly battered the state.

Write to John Kell at john.kell@dowjones.com

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