Hertz Tumbles as Cooling Used-Car Market Hurts Profit
- Depreciation is rising as prices decline for used vehicles
- Utilization remains high across industry, CEO Scherr says
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Hertz Global Holdings Inc. shares fell after the car rental company’s latest earnings showed that falling used-car prices are starting to hurt profits.
Hertz posted third-quarter adjusted earnings of $1.08 a share, slightly above a consensus estimate of analysts for $1.05 a share, but still down from $1.20 in the same period a year ago. One of the chief culprits was rising depreciation costs for the cars in its fleet.