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Hertz’s Shares Tumble 23% After Profit Misses Estimates

  • Rental-car firm says fleet value falls faster than expected
  • Hertz also slashes full-year profit forecast; Avis falls too
Hertz Rental Cars shuttle buses transport passengers to the Hertz rental location at Los Angeles International Airport (LAX) in Los Angeles, California, U.S., on Friday, July 26, 2013.
Photographer: Patrick T. Fallon/Bloomberg
Updated on

Hertz Global Holdings Inc. lost almost a quarter of its market value after the rental-car company reported a third-quarter profit that badly trailed analysts’ estimates and cut its annual earnings forecast, blaming a decline in revenue and a drop in the values of its cars.

Hertz shares fell 23 percent, wiping out $739 million in equity value, and its bonds were among the worst performers Tuesday. Quarterly adjusted profit of $1.58 a share was far below the average estimate of $2.73 in a Bloomberg survey, and Hertz said full-year earnings may be less than a fifth of what it projected in August.