Hertz Shares Plunge After Missing Wall Street Forecasts
Shares of Hertz Global fell over 20% on Tuesday after the rental car giant reported weaker-than-expected quarterly results, citing a smaller vehicle fleet and a slowdown in bookings.
The Estero, Florida-based company announced Monday that its revenue had dropped nearly 13% year-over-year, falling to $1.81 billion. It also reported an adjusted net loss of $1.12 per share — a narrower loss compared to last year, but worse than Wall Street’s expectations. Analysts had anticipated $2 billion in revenue and a loss of 97 cents per share.
Following the report, Hertz stock sank as low as $5.51 in early trading, marking a decline of nearly 21% and ending a four-day streak of gains. By mid-session, the stock had partially recovered, down 13.5% at $5.99. Despite the setback, Hertz shares remain up about 61% year-to-date.
The company attributed the revenue decline to a reduction in fleet size, which has fallen 8% compared to the same period last year. It also noted decreased demand from corporate clients, government agencies, and inbound U.S. travelers.
Just last month, hedge fund billionaire Bill Ackman increased his stake in Hertz to nearly 20% through his firm Pershing Square. That move had sent the stock surging 56%, highlighting the volatility around investor sentiment.
Despite Ackman’s vote of confidence, the latest results reveal the operational challenges Hertz still faces as it tries to navigate shifting market conditions and evolving consumer demand.
