There is an update below!
Hertz Global Holdings (NYSE: HTZ) is having an incredibly hard time in the market today, and for good reason. The company released its earnings report, missing expectations in a big way on both top and bottom line. Of course, this led to panic among investors who promptly pushed the stock downward. As is normally the case, our partners at Trade Ideas were the first to alert us to the declines. At the moment (9:50), HTZ is trading at $12.15 per share after a loss of $2.76 per share or 18.51% thus far today.
HTZ Misses On Earnings
As mentioned above, Hertz Global is having an overwhelmingly rough day in the market today after reporting earnings for the first quarter. Unfortunately, the results missed expectations in a big way. Here’s what we saw from the report…
- Earnings Per Share – In terms of earnings per share, HTZ produced a big upset. During the quarter, the company produced a loss of $1.61 per share. That missed analyst expectations by $0.70 per share.
- Revenue – Unfortunately, revenue wasn’t much better. During the quarter, analysts expected that the company would generate $1.94 billion in revenue. However, the company reported revenue in the amount of $1.92 billion. This was down 3% year over year and missed expectations by $20 million.
Along with the release of earnings, Kathryn V. Marinello, president and CEO at HTZ had the following to offer…
“As previously outlined, we are executing on a turnaround plan that puts our customers at the center of everything we do… Our goal is to strengthen the business to drive predictable, sustainable growth over the long term. While we are mindful of today’s headwinds related to used car residual values, our commitment to investing in the business remains steadfast. In particular, we are placing significant emphasis on fleet quality, the customer experience, brand development and system transformation. These investments are critical to rebuilding our position as a leader in the global rental car market. While our performance doesn’t yet reflect our investments and may continue to be uneven, we are seeing signs of progress.”
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on HTZ. In particular, we’re interested in following the company to see if their investments do indeed lead to predictable and sustainable growth. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
UPDATE 10:44: HTZ is starting to make its way back upward as rumors break. The rumors suggest that Icahn may purchase the company. While we do not believe that these rumors are true, anything can happen in the market and this seems to be leading to some excitement. At the moment, HTZ is trading at $12.96 per share after a loss of $1.95 per share or 13.08% thus far today.
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