(Reuters) – Hertz Global reported a wider-than-expected third-quarter loss and missed revenue estimates on Tuesday, hurt by depreciation charges from its fleet vehicles, sending shares of the rental car firm down more than 8% in premarket trading.
Hertz recorded a $1 billion asset impairment charge during the quarter, citing a decline in fleet residual values, which refers to a vehicle’s disposal price at the end of its operating period, over the last year.
Earlier this year, the company initiated a sale of about 20,000 of its electric vehicles including from Tesla, citing higher repair costs related to those vehicles.
Hertz’ depreciation per unit surged 89% to $537 million in the quarter ended Sept. 30 from a year earlier.
On an adjusted basis, the company lost 68 cents per share compared with analysts’ average estimate of a loss of 50 cents, according to data compiled by LSEG.
Overall quarterly sales fell 5% to $2.58 billion from a year earlier, compared with analysts’ estimates of about $2.7 billion.
(Reporting by Nathan Gomes in Bengaluru; Editing by Shinjini Ganguli)
Comments