PARK RIDGE, N.J. Hertz (HTZ) is cutting its full-year adjusted earnings and revenue forecasts because of softer-than-expected volume for U.S. airport car rentals of its namesake brand. Its shares dropped sharply in premarket trading.
The Park Ridge, N.J., company said Thursday that it now expects full-year adjusted earnings of $1.68 to $1.78 per share on revenue in a range of $10.8 billion to $10.9 billion. Hertz Global Holdings Inc.'s prior outlook was for adjusted earnings of $1.78 to $1.88 per share on revenue of $10.85 billion to $10.95 billion.
Analysts polled by FactSet expect earnings of $1.89 per share on revenue of $10.91 billion.
Chairman and CEO Mark Frissora said in a statement that increased prices for U.S. airport car rentals has helped to somewhat offset the weaker volume. He added that there is strength other areas of the business, including its off-airport car rentals and Dollar Thrifty.
Hertz shares dropped $2.39, or 9.3 percent, to $23.39 in premarket trading about two hours before the market opening. They have fallen from a 52-week high of $27.75 in mid-July.