Core Viewpoint - A class action lawsuit has been filed against Hertz Global Holdings, Inc. for allegedly misleading investors about the financial impact of vehicle depreciation and demand for electric vehicles (EVs) [1][2]. Group 1: Allegations - The lawsuit claims that Hertz downplayed the financial impact of vehicle depreciation and overstated its ability to manage it [2]. - It is alleged that demand for Hertz's EVs was not as strong as represented to investors [2]. - The company reportedly had an excess of vehicles, particularly EVs, which could jeopardize profitability [2]. - As a result of these factors, Hertz is expected to incur significant losses on both internal combustion engine (ICE) and EV vehicles [2]. Group 2: Financial Results - On April 24, 2024, Hertz reported an adjusted diluted earnings-per-share (EPS) of -$1.28 for Q1 2024, significantly below the consensus estimate of -$0.43 and a decline from the adjusted diluted EPS of $0.39 in the same quarter the previous year [3]. - Vehicle depreciation increased by $588 million in the quarter, translating to $339 per unit, primarily due to lower estimated forward residual values and losses on ICE vehicles [3]. - Of the $339 per unit increase in depreciation, $119 was attributed to EVs held for sale [3]. - Hertz also recorded a $195 million charge to vehicle depreciation to adjust the value of EVs held in inventory to fair value and to recognize losses on EVs sold during the period [3]. - Following the announcement of these results, Hertz's stock price fell by $1.12 per share, or 19.31%, closing at $4.68 on April 25, 2024 [3].

ATLANTA, June 03, 2024 (GLOBE NEWSWIRE) -- A shareholder class action lawsuit has been filed against Hertz Global Holdings, Inc. ("Hertz" or the "Company") (NASDAQ: HTZ). The lawsuit alleges that Defendants made materially false and misleading statements and/or failed to disclose material adverse information regarding the Company's business, operations, and prospects, including allegations that: (i) Hertz had downplayed the financial impact of vehicle depreciation, and/or overstated its ability to track and ...

Core Insights - Hertz Global Holdings has appointed Scott M. Haralson as the new Chief Financial Officer, effective by the end of June 2024, succeeding Alexandra Brooks who is leaving for other opportunities [1][2] - Haralson brings over 25 years of experience in financial management and corporate finance, having previously served as CFO of Spirit Airlines and held key roles in other transportation companies [2][3] - The company is focusing on improving financial performance through fleet rotation, operational excellence, cost discipline, and enhancing profitability [2] Company Leadership Changes - Alexandra Brooks will remain with Hertz until the end of June to ensure a smooth transition for Haralson [1][3] - Justin Keppy, the Chief Operating Officer, has also resigned from the company effective June 3, 2024 [3] Company Overview - Hertz operates several vehicle rental brands including Hertz, Dollar, and Thrifty across various global markets [4] - The company is recognized as one of the largest vehicle rental companies worldwide and also owns the Firefly rental brand and Hertz 24/7 car sharing business [4]

The rental car giant's shares are reliving a bit of their 2021 glory today. But recent troubles don't inspire confidence in the rally. Shares of Hertz Global Holdings (HTZ 11.76%) were moving higher on Monday amid a revival of investor interest in the so-called meme stocks that surged earlier this decade. As of 11:30 a.m. ET, Hertz's shares were up about 12.3% from Friday's closing price. Hertz famously rode the meme stock trend to a second life in 2021. The company had filed for bankruptcy with an uncertai ...

Hertz said Thursday that the rental car giant's failed investment in an electric vehicle fleet continues to be an expensive mistake, reporting it lost another $195 million last quarter in depreciation value from writing off the remaining EVs the company has held for sale. The company's total losses were $588 million, greater than Wall Street expectations. The news sent shares down more than 24% on Thursday. The stock pared some losses on Friday. Ticker Security Last Change Change % HTZ HERTZ GLOBAL 4.50 -0. ...

Key TakeawaysHertz Global Holdings announced it was cutting its EV fleet by another 10,000 and took a $195 million charge in the first quarter.That charge was part of a $588 million increase in vehicle depreciation, leading to a per-share loss that was more than double estimates.In January, the company took a $245 million charge as it moved to shed 20,000 EVs.Hertz shares fell 19% on Thursday. Hertz Global Holdings (HTZ) shares cratered after the rental car giant said it will incur an additional $195 millio ...

Challenges in the EV segment continued to weigh on the stock.Shares of Hertz Global Holdings (HTZ -19.31%) were tumbling today after the car rental giant posted disappointing results in its first-quarter earnings, as the company continued to experience challenges with its EV fleet.As a result, the stock was down 19.8% as of 3:28 p.m. ET. Hertz is still short-circuitingHertz's revenue in the quarter rose 2% year over year to $2.1 billion, which topped estimates at $2.04 billion. Total transaction days rose 9 ...

Financial Data and Key Metrics Changes - Revenue for the quarter was $2.1 billion, slightly up year-over-year, but the adjusted corporate EBITDA loss was $567 million, which was deemed unacceptable [34][122] - The direct operating expense (DOE) per transaction day was $37.08, flat compared to Q4 despite inflationary pressures, with March showing a sequential improvement to $35 [162][163] - The net corporate debt at the end of Q1 was $3.25 billion, above the long-term leverage ambition, with a plan to deleverage over time as operational initiatives yield improved profitability [37][166] Business Line Data and Key Metrics Changes - The core rental fleet was up only 2% year-over-year, indicating a tighter fleet management strategy [10][138] - The company plans to reduce vehicles with higher mileage by 75% and complete the rotation out of preowned vehicles by early 2025, which is expected to lower vehicle depreciation and direct operating expenses [11][20] - Value-added services (VAS) revenue saw double-digit year-over-year improvements through enhanced offerings, focusing on selling upgrades [15] Market Data and Key Metrics Changes - Volume for the quarter increased by 9% compared to 2023, driven by higher volume in leisure and rideshare [21] - The company noted that travel indicators, including airline data, are up in the mid-single-digit range, suggesting a positive outlook for demand [45] Company Strategy and Development Direction - The company is focused on operational excellence, cost management, and improving unit economics to drive profitability [7][120] - There is a strong emphasis on fleet management, ensuring that the fleet size remains below projected demand to optimize revenue per day (RPD) [23][175] - The company aims to grow premium revenues and improve customer experience through digital tools and partnerships, particularly in the rideshare segment [161][170] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in Q1 but expressed optimism about the company's potential and the ongoing initiatives to improve performance [34][168] - The company expects to see benefits from cost initiatives and fleet rotation, with a focus on achieving a competitive cost advantage [51][66] - Management highlighted the importance of customer loyalty and the need to enhance the customer experience to drive pricing power [91][108] Other Important Information - The company plans to reduce its EV fleet by 30,000 vehicles by the end of the year, which is expected to lower operating costs [32][30] - The available liquidity at March 31st was $1.3 billion, providing sufficient capacity to execute the planned fleet refresh [166] Q&A Session Summary Question: Overview of business direction - Management sees potential for growth and emphasizes the need to run leaner and improve fleet utilization while aligning fleet mix with core demand [172][173] Question: Fleet rotation and EV sales - The company plans to keep the fleet well below demand to optimize mix and yield opportunities [175] Question: Performance of ICE vs EV vehicles - EV residuals are declining at a more severe rate than ICE vehicles, impacting depreciation [183] Question: Liquidity management - Fleet management is a key tool for liquidity, with plans to rotate out higher cap cost vehicles [188] Question: Customer experience and brand strength - Management believes there is a strong correlation between customer experience and pricing power, with ongoing initiatives to improve service [107][108]

Hertz Global Holdings, Inc. (HTZ) reported $2.08 billion in revenue for the quarter ended March 2024, representing a year-over-year increase of 1.6%. EPS of -$1.28 for the same period compares to $0.39 a year ago.The reported revenue represents a surprise of +2.83% over the Zacks Consensus Estimate of $2.02 billion. With the consensus EPS estimate being -$0.45, the EPS surprise was -184.44%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectati ...

Hertz Global Holdings, Inc. (HTZ) came out with a quarterly loss of $1.28 per share versus the Zacks Consensus Estimate of a loss of $0.45. This compares to earnings of $0.39 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -184.44%. A quarter ago, it was expected that this company would post a loss of $1.02 per share when it actually produced a loss of $1.36, delivering a surprise of -33.33%.Over the last four quarters, the co ...