Hertz Global Holdings (HTZ – Free Report) a Zacks Rank #5 (Strong Sell) operates car rental business. The company’s product and services consists of Hertz Gold Plus Rewards, NeverLost(R), Carfirmations, Mobile Wi-Fi and unique vehicles offered through the Adrenaline, Dream, Green and Prestige Collections. It operates primarily in North America, Europe, Latin America, Asia, Australia, Africa, the Middle East and New Zealand. Hertz Global Holdings, Inc. is based in FL, United States.
Recent Earnings Results
In the company’s most recent earnings report, Hertz missed the Zacks consensus revenue estimate, and came in short of the Zacks consensus earnings estimate for the fourth consecutive quarter. The company reported a second quarter net income from continuing operations net loss of $158 million. Further, HTZ saw total revenues fall by -2.0%, and losses from continuing operations before income taxes for the quarter were $245 million, which included $86 million in impairment charges; the year ago quarter saw only losses of $35 million. Finally, adjusted corporate EBITDA fell from $184 million last year to $35 million this year.
Management’s Take
According to Kathryn V. Marinello, president and chief executive officer of Hertz, “We have made significant progress in the first half of the year, executing on our operating turnaround plan. Of course, the hard work always comes before the pay off as reflected in our second quarter results, where increased spending to fix areas of weakness and invest in areas of opportunity were exacerbated by a challenging vehicle residual environment in the U.S. On the upside, we have now completed our U.S. fleet transformation, redesigned 37 Hertz airport locations for Ultimate Choice, updated our financial and revenue management systems, and introduced new management tools and resources to drive service excellence. Admittedly, we still have a lot of work to do, but these early wins are evidence that we have the right plan in place to ultimately achieve best-in-class outcomes.”
Price and Earnings Consensus Graph
As you can see below, HTZ’s stock price and future earnings estimates have been declining since the middle of 2016.
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