DETROIT – The shares of Hertz Global fell Tuesday morning after the sitting rental company said disappointing profits from the first quarter and a stock offer of $ 250 million.
Hertz's shares were down more than 20% when negotiating early in the morning before finishing on Tuesday, almost 17%, after calling the company's quarterly profits.
The company's shares were only decreasing 3% before the appeal, following the company's report which released after the market closes on Monday.
Here is how Hertz made, on the basis of the average estimates of analysts compiled by LSEG:
- Loss by action: $ 1.12 adjusted against a loss of 97 cents expected
- Automobile income: $ 1.81 billion against $ 2 billion expected
Hertz announced the supply of shares of $ 250 million to the market during the call to start working on deleveraging.
“The combination of an improved profile profile, refinancing of levers and ATM optionality gives us a number of alternatives to combat upcoming deadlines,” said Hertz Scott Haralson's financial director during the quarterly call.
He said the time, the total product and the final number of actions offered will be determined as the process occurs.
Investors are also concerned about Hertz's plan to offer fewer cars to rent, as it deals with lower reservations and cars of President Donald Trump which have had an impact on the prices of new and used vehicles for many models. Hertz and other companies are also faced with a drop in consumers' feeling and less American tourism.
“We have prioritized the actions of the fleet and cost at the top of the list. The cost because it evolves faster. Fleet because it is so hard -hitting,” Hertz CEO, Gil West, to investors during Tuesday call. “So, not saying that we did not focus on income … but as we go through the transformation of income, we are announcing income.”
Hertz's turnover fell 13% in annual shift, mainly due to the reduced capacity of the fleet, which fell 8% compared to the first quarter of 2024, said Hertz.
The lower fleet of the company is part of its “return to employment roadmap” plan to transform the company to optimize the use of vehicles and, as West said on Tuesday, create “more demand that we cannot meet” to improve profits.
Hertz Stock
During the call, Hertz described several key achievements as part of the plan, such as an improvement of $ 92 million on the other of direct operating expenses. It has also retained many objectives previously announced such as depreciation per unit less than $ 300 in the second quarter and the positive adjusted profits before interest, taxes, depreciation and damping in the third quarter of 2025.
The company also said that the first quarter was a record for vehicle sales to retail customers in the midst of a solid residual market given the prices.
“While HTZ accelerates its transition strategy and has certain damage to damping, we think that the risk to come is on demand. Balance, we consider the result as a net negative,” said Barclays analyst Dan Levy, in an investor note on Monday.
The action had increased by 90% this year at the end of Monday, largely thanks to the management of Bill Ackman Square Capital, amassing a 19.8% participation in Hertz.