Why Hertz Declined 16% Tuesday Despite an Earnings Beat
Shares of Hertz Global Holdings, Inc. (NYSE: HTZ), a vehicle rental company with brands such as Hertz, Dollar, and Thrifty, declined 16% Tuesday afternoon after releasing mixed fourth-quarter results.
Fourth-quarter sales increased 1.4% from the prior year to $2.33 billion, just slightly missing analysts' estimates of $2.34 billion. Adjusted earnings per share checked in with a $0.24 loss, which managed to top analysts' estimates calling for a $0.27-per-share loss. Despite missing earnings estimates, Hertz CEO Kathryn Marinello put a positive spin on its top-line growth: "We have made tremendous progress over the past three years in re-igniting topline growth, driving margin expansion and improving customer satisfaction. Our latest results reflect 10 straight quarters of year-over-year revenue growth and nine consecutive quarters of year-over-year adjusted corporate EBITDA growth."
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