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Stock Market & Financial Investment News

News Breaks
August 20, 2014
12:02 EDTCAR, HTZHertz 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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March 24, 2015
16:47 EDTHTZHertz receives NYSE notice of non-compliance
Hertz Global Holdings announced that on March 18, it received a notice from the New York Stock Exchange notifying the company of its failure to meet a NYSE listing standard resulting from the company's failure to timely file its Annual Report on Form 10-K for the fiscal year ended December 31, 2014. As previously disclosed, the company was unable to timely file its 2014 Form 10-K with the SEC because of the ongoing nature of the company's previously announced thorough review and investigation of its internal financial records for fiscal years 2011, 2012 and 2013. As a result of the ongoing nature of this review and its potential impact on the company's 2014 financial results, the company was unable to file the 2014 Form 10-K by the extended due date of March 17, 2015. The financial review and investigation by the company is ongoing. Hertz continues to expect that it will not be able to file updated financial statements, including the 2014 Form 10-K, before mid-2015, and there can be no assurance that the process will be completed by that time.
March 17, 2015
16:00 EDTHTZOptions Update; March 17, 2015
iPath S&P 500 VIX Short-Term Futures down 11c to 27.30. Option volume leaders: AAPL RIG MGM HTZ TWTR TSLA CY KO NFLX C according to Track Data.
09:26 EDTCARAvis Budget management to meet with JPMorgan
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March 16, 2015
14:37 EDTCARAvis Budget backs FY15 EPS view $3.15-$3.75, consensus $3.53
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