Hertz Shares Tank 30% After Big Earnings Miss

Hertz Global Holdings, Inc HTZ on Monday night reported worst than expected results for the third quarter and provided downbeat forecast for the full year.

• The company reported EPS of $1.52, missing estimates by $1.15.
• Generated revenue of $2.5 billion, short of expectations by $0.1 billion.
• Expects adjusted EPS of $0.51-$0.88 for full year compared to analysts estimation of $2.92.

Hertz Global’s President and CEO John Tague said, “Our near-term financial performance continues to be uneven.  A customary vehicle depreciation rate review near the close of the third quarter resulted in a substantial depreciation adjustment, particularly on compact and mid-sized vehicles, that together with rental volume at the low end of our expectations as well as higher net operating and administrative expenses impacted our performance.”

The stock plunged 32.6 percent to $24.09 in the pre-market session.