Hertz Cuts Q2 Profit Outlook, Citing Weak Used-Car Market
HTZ is trading near its 52-week low of $3.775 (9.7% above the low).
Summary
Hertz has lowered its Q2 adjusted EBITDA guidance to the low end of its projected range, now expecting $50 million to $80 million. This revision is primarily due to a weaker-than-expected used-car market, which is driving vehicle depreciation to approximately $300 per unit per month, higher than previous forecasts. This update follows an 8-K filed earlier today and adds to concerns after the company reported a significant Q1 net loss and recently pursued capital raises. The increased depreciation directly impacts profitability and further pressures the company's financial health.
At the time of this announcement, HTZ was trading at $4.14 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $1.6B. The 52-week trading range was $3.78 to $8.44. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.