Advertisement
Singapore markets closed
  • Straits Times Index

    3,224.01
    -27.70 (-0.85%)
     
  • Nikkei

    40,168.07
    -594.66 (-1.46%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • Bitcoin USD

    70,843.62
    +2,098.48 (+3.05%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • S&P 500

    5,260.17
    +11.68 (+0.22%)
     
  • Dow

    39,850.42
    +90.34 (+0.23%)
     
  • Nasdaq

    16,397.08
    -2.44 (-0.01%)
     
  • Gold

    2,240.50
    +27.80 (+1.26%)
     
  • Crude Oil

    82.97
    +1.62 (+1.99%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • FTSE Bursa Malaysia

    1,530.60
    -7.82 (-0.51%)
     
  • Jakarta Composite Index

    7,288.81
    -21.28 (-0.29%)
     
  • PSE Index

    6,903.53
    +5.36 (+0.08%)
     

Bear of the Day: Hertz Global Holdings (HTZ)

Hertz Global Holdings (HTZ) a Zacks Rank #5 (Strong Sell) operates car rental business. The company's product and services consists of Hertz Gold Plus Rewards, NeverLost(R), Carfirmations, Mobile Wi-Fi and unique vehicles offered through the Adrenaline, Dream, Green and Prestige Collections. It operates primarily in North America, Europe, Latin America, Asia, Australia, Africa, the Middle East and New Zealand. Hertz Global Holdings, Inc. is based in FL, United States.

Recent Earnings Results

In the company’s most recent earnings report, Hertz missed the Zacks consensus revenue estimate, and came in short of the Zacks consensus earnings estimate for the fourth consecutive quarter.  The company reported a second quarter net income from continuing operations net loss of $158 million.  Further, HTZ saw total revenues fall by -2.0%, and losses from continuing operations before income taxes for the quarter were $245 million, which included $86 million in impairment charges; the year ago quarter saw only losses of $35 million.  Finally, adjusted corporate EBITDA fell from $184 million last year to $35 million this year.  

Management’s Take

According to Kathryn V. Marinello, president and chief executive officer of Hertz, “We have made significant progress in the first half of the year, executing on our operating turnaround plan. Of course, the hard work always comes before the pay off as reflected in our second quarter results, where increased spending to fix areas of weakness and invest in areas of opportunity were exacerbated by a challenging vehicle residual environment in the U.S. On the upside, we have now completed our U.S. fleet transformation, redesigned 37 Hertz airport locations for Ultimate Choice, updated our financial and revenue management systems, and introduced new management tools and resources to drive service excellence. Admittedly, we still have a lot of work to do, but these early wins are evidence that we have the right plan in place to ultimately achieve best-in-class outcomes.”

Price and Earnings Consensus Graph

As you can see below, HTZ’s stock price and future earnings estimates have been declining since the middle of 2016.

Hertz Global Holdings, Inc Price and Consensus

Hertz Global Holdings, Inc Price and Consensus | Hertz Global Holdings, Inc Quote

ADVERTISEMENT

Declining Earnings Estimates

Due to debt issues and the continued resale value decline of their used cars analysts have significantly reduced their earnings estimates over the past 30 days; Q3 17 fell from $1.46 to $1.30, Q4 dropped from -$0.56 to -$0.65, FY 17 declined from -$1.05 to -$1.48, and FY 18 plummeted from $0.45 to -$0.09.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.

Click here for the 6 trades >>
 

 


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Hertz Global Holdings, Inc (HTZ) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research