Hertz Misses On Revenue, Profit As Fleet Shrinks, Costs Weigh

Shares of Hertz Global Holdings, Inc HTZ are trading lower in premarket on Thursday.

The company reported a fourth-quarter FY24 sales decline of 6.6% year-on-year to $2.04 billion, missing the analyst consensus estimate of $2.12 billion.

Average rentable vehicles decreased by 6% to 497,875, with 79% vehicle utilization.

Total revenue per day (RPD) declined 2% to $57.10. Americas RAC segment revenue decreased by 8% whereas the International RAC segment slipped 2%.

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Selling, general and administrative expenses decreased 8.9% to $225 million.

As of the end of December, Hertz had $592 million in cash and equivalents, and its operating cash flow for the quarter totaled $414 million.

Adjusted corporate EBITDA for the quarter was $(357) million, with an adjusted corporate EBITDA margin of (18)%.

Adjusted EPS of $(1.18) missed the consensus estimate of $(0.71).

"Our focus in 2024 was stabilizing the business and implementing fundamental changes to transform our company," said CEO Gil West. "With our new leadership team and organizational structure in place, we are well positioned to execute our strategy with rigor and at pace."

Price Action: HTZ shares are trading lower by 12.0% at $3.75 in premarket at last check Thursday.

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