New User:

-or-
Username:
Password:
Forgot your password?

Stock Market & Financial Investment News

News Breaks
August 20, 2014
12:02 EDTHTZ, CARHertz drops after withdrawing full year guidance, analyst downgrades
Shares of car rental firm Hertz (HTZ) are sinking after the company withdrew its fiscal 2014 outlook and received several analyst downgrades. WHAT'S NEW: Last night, Hertz said it expects its FY14 results to be "well below" the low end of its prior view. On May 13, the company forecast FY14 adjusted EPS of $1.70-$2.00, versus consensus of $1.86. FY14 revenue was seen at $11.4B-$11.7B, compared to consensus $11.52B. FY14 corporate EBITDA was expected to be $2.06B-$2.42B, with FY14 free cash flow of $550M-$650M. WHAT'S NOTABLE: To explain the revised outlook, Hertz cited ongoing operational challenges in the rental car and equipment segments, as well as the associated costs related to the accounting review previously disclosed. These ongoing challenges include: Record level, industry-wide OEM vehicle recall activity, which has constrained the company’s U.S. fleet available for rent; Significantly higher-than-expected adjusted direct operating expense in U.S. rental car; Issues and delays associated with the installation of its Enterprise Resource Planning and counter systems, which have adversely impacted anticipated synergy capture flowing from the Dollar Thrifty acquisition; and Continued soft demand in the equipment rental business segment. ANALYST REACTION: This morning, JP Morgan downgraded Hertz to Neutral from Overweight citing reduced confidence that the company's issues will be resolved in the near-term after it withdrew its full year forecast. The firm believes the wealth of bad news in the company's 8-K filing will prove to be a capitulation point for many bulls. The firm cut its price target on the shares to $25 from $32. Deutsche Bank also downgraded Hertz, revising its rating to Hold from Buy after the company withdrew is forecast for the year. PRICE ACTION: In early afternoon trading, Hertz dropped $3.00, or about 9.5%, to $28.56 on nearly seven times its average daily trading volume. Despite today's pull back, the stock is up approximately 14% over the past 12 months. OTHERS TO WATCH: Hertz' main competitor in the car rental space, Avis Budget Group (CAR), was up 0.3% in trading today.
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.
September 30, 2014
16:22 EDTCAROn The Fly: Closing Wrap
Subscribe for More Information
16:00 EDTHTZOptions Update; September 30, 2014
iPath S&P 500 VIX Short-Term Futures up 37c to 31.18. Option volume leaders: AAPL TSLA NFLX BAC TWTR AMZN HTZ DOW C F NFLX PBR according to Track Data.
14:53 EDTCAR, HTZAvis Budget falls after CFO calls high end of EBITDA goal 'challenging'
Subscribe for More Information
14:25 EDTCARAvis Budget recommended strongly on weakness at MKM Partners
Subscribe for More Information
13:33 EDTCARAvis Budget sees roughly $1B of free cash flow in 2014-2015
Subscribe for More Information
September 19, 2014
08:05 EDTHTZHertz says China partner IPOs in Hong Kong
Subscribe for More Information
September 16, 2014
08:06 EDTHTZHertz and Carl Icahn reach agreement regarding board appointments
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