Hertz Global Holdings Inc. HTZ shares are trading lower Tuesday after the company reported third-quarter earnings that fell short of analyst expectations. Here’s what you need to know.
What To Know: Hertz Global posted a third-quarter loss of 68 cents per share, missing the consensus estimate for a loss of 50 cents per share. Revenue for the quarter fell 3.8% year-over-year to $2.6 billion, below analyst projections of $2.7 billion, according to Benzinga Pro.
The company noted that its third-quarter results were impacted by a $1 billion non-cash asset impairment charge, mainly due to decreased fleet residual values as Hertz accelerated its fleet rotation initiative. The company’s rotation strategy led to a notable increase in vehicle depreciation expenses, which hit $937 million for the quarter, up substantially from the previous year.
CEO Gil West commented on Hertz's ongoing transformation, stating that the company is focused on its "back-to-basics strategy" aimed at sustainable, long-term shareholder returns. Hertz aims to complete its fleet rotation by the end of 2025, at which point it anticipates that depreciation per unit will normalize to under $300.
“Our team’s commitment to both our customers and our strategic objectives were evident throughout the summer. This dedication is reflective of our ongoing endeavors to improve operational performance and reposition the Company to achieve against its value proposition,” West said.
“There is still work to be done, but I am confident that the enhancements achieved over the course of this quarter demonstrate that we are on the right track.”
HTZ Price Action: Hertz Global shares were down 1.63% at $3.31 at the time of publication, according to Benzinga Pro.
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