Why Hertz Global Stock Fell Today
Shares of Hertz Global Holdings (NASDAQ: HTZ) were down 11.7% as of 2:30 p.m. EDT Thursday after posting in-line revenue but weaker-than-expected earnings for its third quarter of 2023.
Hertz's quarterly revenue climbed 8% year over year to a company-record $2.703 billion, translating to generally accepted accounting principles (GAAP) net income of $629 million, or $0.92 per share. On an adjusted (non-GAAP) basis -- which notably excluded a $328 million benefit related to the change in fair value of public warrants -- Hertz's net income was $230 million, or $0.70 per share. Analysts, on average, were expecting higher adjusted earnings of $0.76 per share on roughly the same revenue.
Hertz Chairman and CEO Stephen Scherr said the company enjoyed strong demand and stable pricing, as well as growth from its rideshare business. "We nonetheless remain focused on the cost side to improve margins," Scherr added. "Our ongoing investments will give rise to better operating fundamentals, and with the growth opportunities ahead of us, I am confident in the trajectory of our business and the forward for Hertz."
Source Fool.com
