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Hertz nosedives 25% after Q3 miss, poor guidance

Published 11/07/2016, 05:51 PM
Hertz nosedives 25% after Q3 miss, poor guidance
HTZGQ
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  • Hertz Global Holdings (HTZ +7.3%) has slid 25.7% after hours after turning in a bad miss in Q3 earnings and updated guidance that expects more of the same.
  • "We are making progress in foundational aspects of our long-term business improvement plan, implementing new systems, improving customer service levels and launching new products," says CEO John Tague; "However, our near-term financial performance continues to be uneven." The company took a big depreciation adjustment to go along with low rental volume and higher expenses.
  • In the U.S., transaction days were up 1% to 38.28M, while revenue available per car day fell 4% to $36.27. Vehicle utilization fell to 82% from 83%, and net depreciation (per unit per month) rose 14% to $304.
  • Internationally, transaction days rose 2% to 15.13M; revenue available per car day fell 2% to $36.11. Utilization was near flat at 81%, and net depreciation rose 1% to $188.
  • The company's now guiding to a revenue decline of 2-3% and EPS of $0.51-$0.88 (below consensus for $2.92). It sees EBITDA of $575M-$625M, well below consensus for $873M.
  • Press Release

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