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(Sharecast News) - Hertz shares fell on Thursday after the car rental giant reported a wider-than-expected fourth-quarter loss, as a federal government shutdown, flight cancellations and weaker used-car prices weighed on results.
The company reported a net loss of $194m for the quarter, with an adjusted net loss of $252m.
Adjusted earnings per share came in at a loss of 72cents, missing analyst expectations for a 52cents loss by 20cents, according to Investing.com.
It reported a per-share loss of 63cents, also worse than the consensus forecast.
Revenue rose modestly to $2.03bn, ahead of the roughly $2bn expected by analysts, according to Reuters.
However, profitability was hit by what the company described as "compounding external events," including the government shutdown, FAA flight cancellations, technology vendor outages and an unusually high number of vehicle recalls.
Those factors reduced fourth-quarter EBITDA by more than $100m.
Hertz posted negative adjusted EBITDA of $205m, compared with expectations for a $97.5m loss.
The company also recorded around $60m in non-cash depreciation related to a revised residual value outlook and softer seasonal wholesale pricing.
Its adjusted EBITDA margin was negative 10% in the quarter.
Vehicle depreciation averaged $330 per vehicle per month, higher than expected, while fleet utilisation declined from recent quarters and compared with a year earlier.
Even so, Hertz said that excluding the cited headwinds, core EBITDA was broadly in line with its expectations.
Chief executive Gil West said the improvements under the company's turnaround plan were structural, describing the recent pressures as transitory.
The company said profitability improved by $2bn in its first full year under the plan.
Operationally, Hertz reported sequential improvement in pricing metrics and utilisation, contributing to revenue per unit gains.
The company also noted that its net promoter score rose nearly 50% year-on-year, reflecting improvements in rental ease, fleet quality and service reliability.
Looking ahead, Hertz expects mid-single-digit revenue growth in the first quarter of 2026, with January revenue improving meaningfully from a year earlier and February and March trending higher.
The company said residual values were improving from fourth-quarter seasonal lows and that it saw a more normalised outlook for 2026.
At 1209 ER (1709 GMT), shares in Hertz Global Holdings were down 1.92% in New York at $4.335.
Reporting by Josh White for Sharecast.com.