Hertz Global Holdings, the parent company of Hertz car rental franchises, saw its stock plunge 15% to $US12.67 a share after reporting a first-quarter loss that was worse than analyst forecasts.
The adjusted loss for the period was $US1.61 per share, missing analyst estimates of an $US0.84 per share deficit. The company also reported quarterly revenue of $US1.92 billion, missing a consensus forecast of $US1.95 billion.
“As previously outlined, we are executing on a turnaround plan,” president and CEO Kathryn V. Marinello said in a statement. “While we are mindful of today’s headwinds related to used car residual values, our commitment to investing in the business remains steadfast.”
The weakness seen in Hertz shares is bad news for shareholders, who have seen the stock plunge 88% since reaching a record high in August 2014. The company’s shares closed at $US14.61 on May 4, the lowest since 2009.
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