Rental car giant Hertz Global Holdings (HTZ 5.58%) posted fourth-quarter results that fell short of estimates. Investors are looking for the exit ramp, sending Hertz shares down as much as 14% for the day and down 8% as of 2:15 p.m. ET.
Bigger-than-expected loss
Hertz, a holding company that owns not just the Hertz brand but Dollar and Thrifty as well, posted a fourth-quarter loss of $1.18 per share on revenue of $2.04 billion, missing Wall Street's consensus estimate of a $0.72-per-share loss on $2.13 billion in revenue.
Though the loss was a disappointment, Hertz said its long-term restructuring plan is on track. The company completed a planned 30,000 vehicle reduction in its electric vehicle fleet during 2024 and ended the year with $1.8 billion in liquidity.
"Our focus in 2024 was stabilizing the business and implementing fundamental changes to transform our company," CEO Gil West said in a statement. "We are turning our fleet into a business advantage with a comprehensive strategy that will enable us to operate more efficiently while improving vehicle choice for our customers."
NASDAQ: HTZ
Key Data Points
Is Hertz stock a buy?
It has been a rough few years for car rental companies, with Hertz shares down about 80% since the beginning of 2022. West said that the progress made in 2024 "positions us to execute our transformation in 2025, and I am confident in our ability to deliver sustainable value for our customers, employees, and shareholders."
Perhaps, but investors should remember that this is a capital-intensive, asset-heavy business that is subject to the whims of the broader consumer economy. An expected uptick in used auto prices in 2025 should help some, but Hertz still has a rocky road to travel ahead.
