Shares of Hertz Global Holdings Inc. took a 7.4% dive in premarket trading Thursday, after the rental car company reported a wider-than-expected loss, a revenue miss and vehicle depreciation that increased $706 million.
The company swung to a net loss of $865 million, or $2.82 a share, from net income of $139 million, or 44 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted per-share losses of $1.44 compared with the FactSet loss consensus of $1.25. Revenue fell 3.4% to $2.35 billion, below the FactSet consensus of $2.46 billion.
Hertz said the increase in vehicle depreciation was due primarily to an increase to a drop in future and current residual values.
The company said the acceleration of the refreshing of its fleet, which includes a significant expansion of its plan to sell off its electric vehicles, is expected to be substantially completed by the end of 2025.
The stock has plunged 60.7% year to date through Wednesday, while the S&P 500 has gained 15.8%.
