MW Hertz's stock slides 11% as earnings again fall short as company works to refresh fleet

Hertz Global Holdings Inc.'s stock tumbled 11% early Thursday, after the car-rental company's quarterly loss widened more than expected while revenue lagged estimates as it continues to work on a wide-ranging overhaul of its business.

Estero, Fla.-based Hertz $(HTZ)$ had a loss per share of $1.56 for the quarter wider than the loss of $1.14 posted in the year-earlier period. Adjusted for one-time items, the company's loss per share came to $1.18, wider than the 69-cent loss per share consensus of FactSet analysts.

Revenue fell to $2.040 billion from $2.184 billion a year ago, also below the $2.125 billion FactSet consensus.

Vehicle depreciation improved by 19% in the quarter, but that was partially offset by a loss on sales driven by higher-than-normal defleeting, the company said in a statement.

The company is currently in the midst of a fleet rotation that includes selling off tens of thousands of its electric vehicles as it looks to improve the fleet mix to better match customer demand and fast-track the normalization of vehicle depreciation.

"The company is in the midst of an operational transformation grounded in its back to basics strategy aimed at strengthening the core business," it said. The transformation is expected to be largely completed by year-end.

(This is a breaking news story. Check back for updates)

-Ciara Linnane

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February 13, 2025 08:15 ET (13:15 GMT)

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