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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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January 16, 2015
09:06 EDTHTZWalgreens Boots Alliance says Thomas Sabatino to join Hertz as general counsel
Walgreens Boots Alliance (WBA) announced that Thomas Sabatino Jr., EVP, global chief legal and administrative officer, will be leaving the company to join Hertz Global Holdings (HTZ) as senior executive vice president, chief administrative officer and general counsel, effective February 9. Sabatino will remain in his current role with Walgreens Boots Alliance through the end of January to ensure a smooth transition of his current responsibilities. The company expects to announce his successor at that time.
09:03 EDTHTZHertz appoints Tom Sabatino Senior EVP, Chief Administrative Officer
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05:56 EDTHTZStocks with implied volatility movement; GLD HTZ
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