:max_bytes(150000):strip_icc()/GettyImages-1980497095-ec43447fa4474f0b83116735a6f9e64a.jpg?w=1500&resize=1500,998&ssl=1 "Hertz Results Hit by B Impairment Charge | Global News Avenue")
Hertz Results Hit by $1B Impairment Charge
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Main points
- Hertz Global Holdings on Tuesday reported a larger-than-expected third-quarter loss.
- The company reported a $1 billion non-cash asset impairment charge, which it attributed to “a decline in fleet residual values over the past year or so.”
- The company also took a huge charge earlier this year from selling the 30,000 electric vehicles in its fleet.
Hertz Global Holdings Inc. (HTZ) reported a wider-than-expected third-quarter loss on Tuesday, hurt by non-cash assets Impairment charge $1 billion.
The rental car company reported revenue of $2.58 billion, down 5% year over year and below the consensus estimate of analysts at Visible Alpha. Excluding impairment charges, Hertz’s adjusted net loss was $208 million, or 68 cents per share, beating expectations.
Hertz said the impairment charge was due to “a decline in fleet residual values over the past year or so.” The company admitted that its strategy of trying to maximize revenue per unit (RPU) “resulted in lower sales volumes.”
Hertz shares initially fell on Tuesday, then reversed course and were last up 3%. Still, the stock will lose about two-thirds of its value in 2024, in part due to other hefty charges incurred this year, including writedowns 30,000 electric vehicles.
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