Hertz shares crash

Daily Freeman (Kingston, NY) - - BUSINESS -

Hertz Global Hold­ings shares plunged Tues­day af­ter the car rental com­pany re­ported weaker third-quar­ter re­sults than ex­pected and slashed its profit fore­cast for the year.

The com­pany said it is mak­ing progress in its long-term busi­ness but called its near-term fi­nan­cial per­for­mance “un­even.” It at­trib­uted the weak quar­ter to low rental vol­ume, higher ex­penses and a de­pre­ci­a­tion ad­just­ment for the value of some cars.

Its net in­come fell last quar­ter to $42 mil­lion from $237 mil­lion a year ago. Af­ter ig­nor­ing one-off costs and dis­con­tin­ued op­er­a­tions, it earned $1.58 per share. An­a­lysts sur­veyed by Zacks In­vest­ment Re­search were ex­pect­ing $2.81 per share.

Hertz also said it ex­pects to earn 51 cents per share to 88 cents for the full year, on an ad­justed ba­sis. A few months ago, it was fore­cast­ing earn­ings of $2.75 per share to $3.50.

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