New User:

-or-
Username:
Password:
Forgot your password?

Stock Market & Financial Investment News

News Breaks
June 6, 2014
15:09 EDTHTZ, CARHertz crashes after more accounting errors found, profit warning issued
Shares of rental company Hertz (HTZ) are crashing after the company warned its first quarter results are "likely to be below consensus" and revealed that mistakes were identified during its preparation of its financial statements and that certain ones must be restated. WHAT'S NEW: Hertz announced that it postponed the filing of its form 10-Q due to errors identified relating to the company's conclusions regarding the capitalization and timing of depreciation for certain non-fleet assets, allowances for doubtful accounts in Brazil, as well as other items. Hertz continued its review and identified additional errors related to allowances for uncollectible amounts with respect to renter obligations for damaged vehicles and restoration obligations at the end of facility leases. The company's audit committee concluded that the financial statements for 2011 should no longer be relied upon and Hertz must restate them. Hertz said in its filing that it also needs to correct the 2012 and 2013 financial statements to reflect these errors and that it may need to restate those as well. Hertz also noted in the filing that for Q1 the company’s results are "likely to be below consensus, reflecting costs associated with the accounting review, other unusual items, and certain anticipated operating results." Consensus for Hertz' Q1 EPS and revenue were 9c and $2.56B, respectively, prior to the filing. Hertz also noted in its filing that Q1 U.S. rental car revenue increased approximately 4.5% over the same period last year and that U.S. rental car total revenue per day was down 1.6% compared with last year. International rental car revenue increased approximately 1.7% over the same period last year and worldwide equipment rental segment revenue increased approximately 2.4% over the same period last year during Q1, Hertz added. WHAT'S NOTABLE: Hertz had previously filed to delay its 10-Q on May 13 and disclosed some of the errors it had found to that point. Hertz stated that its previously disclosed equipment rental business’ transition into a new, publicly traded company is advancing and remains "on track," but added that it is possible that the efforts to resolve the various accounting issues could impact the timing of the actual separation. ANALYST REACTION: Wells Fargo analyst Richard Kwas wrote that Hertz's disclosure will be a headwind for the stock, as he feels the ongoing accounting mistakes are likely to spark further concerns among investors. However, Kwas noted that the errors don't appear to be fleet-related and he feels the forward commentary the company gave as part of its filing to be "good." Wells Fargo has an Outperform rating on the stock. OTHERS TO WATCH: The primary publicly traded competitor to Hertz in the rental car industry is Avis Budget (CAR). PRICE ACTION: During afternoon trading, shares of Hertz fell 8.86% to $27.79, while Avis Budget was up 2.25% to $60.03.
News For HTZ;CAR From The Last 14 Days
Sign up for a free trial to see the rest of the stories you've been missing.
October 30, 2014
11:42 EDTHTZHertz November volatility elevated into Q3 and outlook
Hertz November weekly call option implied volatility is at 84, December is at 60, January is at 54, and March is at 49; compared to its 26-week average of 40 according to Track Data, suggesting large near term price movement into the expected release of Q3 results on November 3.
09:31 EDTCARZipcar debuts in Madrid
Subscribe for More Information
October 29, 2014
16:41 EDTCARAvis Budget sees FY14 EPS $2.82-$3.00, consensus $2.86
Subscribe for More Information
16:39 EDTCARAvis Budget reports Q3 EPS $1.91, consensus $1.80
Subscribe for More Information
15:53 EDTCARNotable companies reporting after market close
Subscribe for More Information
October 28, 2014
13:55 EDTCAR, HTZThree car rental companies engage in 'constructive dialogue' with EC
Subscribe for More Information
09:31 EDTCARAvis Budget signs exclusive partnership with 3RD HOME
Avis Car Rental announced that it has established a new exclusive partnership with 3RD HOME. As part of the new multi-year agreement, Avis will become the exclusive car rental supplier for 3RD HOME, with 3RD HOME club members now eligible to receive exclusive discounts and privileges for Avis rentals at participating locations. At the same time, Avis will introduce its members to 3RD HOME's services through its website and select marketing communications.
08:52 EDTCARAvis Budget risk/reward favorable into Q3 results, says MKM Partners
Subscribe for More Information
08:34 EDTHTZHertz opens new heavy industrial equipment facility in Missouri
Subscribe for More Information
October 24, 2014
08:40 EDTCARAvis Budget to acquire Budget licensee for southern CA, Las Vegas for $210M
Subscribe for More Information
October 22, 2014
09:38 EDTCARActive equity options trading on open
Active equity options trading on open according to Track Data: AAPL PBR AMZN C TWTR YHOO BAC GILD FB THRX DOW CAR
08:38 EDTCARAvis Budget price target lowreed to $56 from $62 at Barclays
Subscribe for More Information
October 21, 2014
14:09 EDTHTZThird Point discloses new positions in eBay, Alibaba, exit from Sony
In its Q3 investor letter, Third Point says it established a "significant" position in eBay (EBAY). Dan Loeb's hedge fund also revealed it has established a significant direct investment in Alibaba (BABA) shares now that the company is public. Third Point also said it is now one of Amgen's (AMGN) largest shareholders. During the quarter, Third Point exited its position in Sony (SNE) and reduced or exited other positions, including AIG (AIG), Hertz (HTZ) and Softbank (SFTBF), the firm stated in its letter. PRICE ACTION: Following the disclosures in the Third Point letter, Amgen is up 4%, eBay is up 2.3% and Alibaba is up 3.8%, while Sony shares trading in New York are down nearly 1%.
11:02 EDTHTZHertz, United Airlines upgrade partnership
Subscribe for More Information
08:12 EDTHTZNissan selects Hertz as exclusive mobility partner
Subscribe for More Information
October 20, 2014
08:58 EDTHTZJana Partners reports 7% stake in Hertz, says may engage in talks
Subscribe for More Information

Sign up for a free trial to see the rest of the stories you've been missing.

I agree to the theflyonthewall.com disclaimer & terms of use