Hertz(US:HTZ) GlobeNewswire News Room·2024-07-16 21:25Core Viewpoint - A class action lawsuit has been filed against Hertz Global Holdings, Inc. for allegedly misleading investors regarding the financial impact of vehicle depreciation and demand for electric vehicles (EVs) [4][7]. Group 1: Allegations and Financial Impact - The complaint alleges that Hertz downplayed the financial impact of vehicle depreciation and overstated its ability to manage it [4]. - It is claimed that demand for Hertz's EVs was not as strong as represented to investors [4]. - Hertz reportedly had an excess of vehicles, particularly EVs, which affected profitability [4]. - As a result of these issues, Hertz is expected to incur significant losses on both internal combustion engine (ICE) and EV vehicles [4]. - The overall impact of these factors has been significant on Hertz's financial results [4]. Group 2: Financial Results and Market Reaction - On April 24, 2024, Hertz announced its Q1 2024 results, reporting an adjusted diluted earnings-per-share (EPS) of -$1.28, significantly below the consensus estimate of -$0.43 and down from an adjusted diluted EPS of $0.39 in the same period the previous year [9]. - Vehicle depreciation increased by $588 million in the quarter, translating to a $339 per unit increase, primarily due to lower estimated forward residual values and losses on ICE vehicles [9]. - Of the $339 per unit increase, $119 was attributed to EVs held for sale [9]. - Hertz also reported a $195 million charge to vehicle depreciation to adjust the value of EVs held for sale and recognize losses on sold EVs [9]. - Following the announcement, Hertz's stock price fell by $1.12 per share, or 19.31%, closing at $4.68 on April 25, 2024 [9].