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Hertz Global Holdings Inc.’s stock tumbled 12% Tuesday to put it on track for a record-low close, pulled down by bad news from its smaller rival, Avis Budget Group Inc.
Hertz
HTZ,
was last quoted at $7.61, its lowest level since it emerged from bankruptcy in 2021, according to Dow Jones Market Data.
The stock has fallen for four of the past five days and is down 26% in the year to date. Last week, the car-rental company posted weaker-than-expected fourth-quarter earnings as it booked $245 million in charges relating to plans to reduce the size of its electric-vehicle fleet, a move it had announced in January.
The company said last month that it planned to sell about 20,000 electric vehicles from its fleet, or about one-third of the total, in another sign that the EV revolution is stalling amid weak demand from consumers.
The company’s loss was bigger than expected, although revenue was a whisker ahead of consensus.
See now: Hertz’s stock gets downgraded, and Tesla has a lot to do with it
Avis
CAR,
on Tuesday was headed for its worst day in four years, after it said it sold a record number of vehicles during the fourth quarter, in a bad market for used cars, due to vehicle oversupply and a spike in interest costs.
Avis was still ahead of consensus, even amid a surprise decline in revenue. But the stock fell more than 23% as the overall market tanked following a surprisingly hot inflation reading for January.
See now: January CPI report: Inflation comes in hotter than expected
Hertz executives spent the company’s earnings call with analysts trying to talk up a return to profitability and underscore their commitment to getting back on track. Hertz is also planning to create profitable incremental revenue streams and will grow ride-share and improve its European and value-brand businesses, Scherr said.
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