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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
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October 31, 2014
13:14 EDTCARAvis Budget management to meet with MKM Partners
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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
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October 29, 2014
16:41 EDTCARAvis Budget sees FY14 EPS $2.82-$3.00, consensus $2.86
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16:39 EDTCARAvis Budget reports Q3 EPS $1.91, consensus $1.80
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15:53 EDTCARNotable companies reporting after market close
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October 28, 2014
13:55 EDTCAR, HTZThree car rental companies engage in 'constructive dialogue' with EC
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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
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08:34 EDTHTZHertz opens new heavy industrial equipment facility in Missouri
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October 24, 2014
08:40 EDTCARAvis Budget to acquire Budget licensee for southern CA, Las Vegas for $210M
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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
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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
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08:12 EDTHTZNissan selects Hertz as exclusive mobility partner
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October 20, 2014
08:58 EDTHTZJana Partners reports 7% stake in Hertz, says may engage in talks
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